Lesson Notes By Weeks and Term - Senior Secondary 1

Money

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Term: 3rd Term

Week: 5

Class: Senior Secondary School 1

Age: 15 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Economics

Topic:-       Money

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

  1. Define money market
  2. List some institutions involved in the money market
  3. State the importance of the money market

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

PRESENTATION

TEACHER’S ACTIVITY

STUDENT’S ACTIVITY

STEP 1

INTRODUCTION

The teacher reviews the previous lesson on financial system

Students pay attention

STEP 2

EXPLANATION

She explains the meaning of money market. She lists the institutions involved in the money market

Students pay attention and participates

STEP 3

DEMONSTRATION

She states the importance of the money market

Students pay attention and participate

STEP 4

NOTE TAKING

The teacher writes a summarized note on the board

The students copy the note in their books

 

NOTE

MONEY MARKET

Money market can be defined as a market for short term loan . The market consist of institutions or individuals who either have money to lend or wish to borrow on a short term basis.

 

INSTRUMENTS USED IN THE MONEY MARKET

  1. Treasury Bill : treasury bill is normally issued by the central bank of a country which assists the government to borrow money from the money market on short term basis.
  2. Call money funds: the call money fund is any type of short-term, interest-earning financial loan that the borrower has to pay back immediately whenever the lender demands it. Call money allows banks to earn interest, known as the call loan rate, on their surplus funds. Call money is typically used by brokerage firms for short-term funding needs.
  3. Bill of exchange: bill exchange refers to a promissory note which shows the acknowledgement of indebtedness by a debtor to his creditor and his intention to pay the debt on demand or at an agreed time in future, normally ( 90days)
  4. Liquidity adjustment facility is a form of monetary policy tool that allows banks to borrow money from the central bank.

 

INSTITUTIONS INVOLVED IN THE MONEY MARKET

  1. Central Bank.
  2. Commercial banks.
  3. Acceptance houses
  4. Finance houses.
  5. Discount houses
  6. Insurance companies.

 

IMPORTANCE OF MONEY MARKET

  1. Provision of finance : money market enables entrepreneurs and investors to raise enough finance through borrowing to run their businesses.
  2. Creation of extra income: the money invested in money market is capable of yielding extra income in form of interest.
  3. Promotion of economic development: Economic growth and development is enhanced through borrowing from money market.
  4. It enhances savings: money market provides opportunity for those having surplus fund to invest thereby enhancing savings.

EVALUATION:    1. Define money market

  1. State three institutions involved in the money market
  2. Highlight three importance of the money market

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively