Lesson Notes By Weeks and Term - Senior Secondary 1

Term: 3^rd Term

Week: 7

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
2. List some qualities of money
3. Discuss the similarities and differences between money and other commodities
4. Explain the functions of money
5. State the types of money

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

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

NOTE                        

MONEY

Money is any object that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context.

Or Money is anything that is generally acceptable as a medium of exchange and in the settlement of debts. Or anything that is backed by law as a medium of exchange.

HISTORICAL DEVELOPMENT OF MONEY

Money originated as a result of the various problems that arose from trade by barter, like double coincidence of wants, indivisibility of goods, bulkiness of some goods. Etc.

Commodities like cowries, cattle, beads etc, served as money in the olden days. Precious metals like gold and silver were also later used.

The use of paper money originated from the use of receipts issued by goldsmiths in exchange for deposits of precious metals. The receipts became bank notes and the goldsmiths became bankers.

QUALITIES OF MONEY.

1. General acceptability: money must be generally acceptable by all in the society or country as a means of exchange. This shows the confidence people have in money.
2. Relatively scarcity: money must not be too many so as not to lose its value.
3. Recognisability: money must be easily recognised and identified by the totality of the people in the society.
4. Portability of money: the object that serves as money must be something that can easily be carried about from one place to another.
5. Homogeneity: each unit of money must be same in size, colour and quality and be the same Nationwide.
6. Durability: money must be able to last long, and not be a perishable commodity.

SIMILARITIES BETWEEN MONEY AND OTHER COMMODITIES

1. There is fluctuation in the values of money and other commodities.
2. Both are demanded by people.
3. Money and other commodities are used for exchange.
4. The prices of both are determined by the forces of demand and supply.

DIFFERENCES BETWEEN MONEY AND OTHER COMMODITIES

1. Money is generally acceptable while other commodities are not.
2. Money is homogeneous while other commodities are not.
3. Money is durable while other commodities are not.
4. Money is divisible into small units while other commodities are not.
5. Money is relatively scare while other commodities are not.

FUNCTIONS OF MONEY

1. Medium of exchange: money can serve as a medium through which people can exchange goods and services.
2. Store of value: money is a good store of value because wealth can be stored for future use. When there is no inflation, money stored or saved retains its value for many years.
3. Standard of deferred payment: since money can be stored, it can be accumulated to pay debts that are fixed in terms of money.
4. As a measure of value: the value of goods and services are expressed by prices, therefore money is used as a yardstick to measure and compare the worth of goods and services as well as occupation.

TYPES OF MONEY

1. Credit card: A credit card is a thin rectangular piece of plastic or metal issued by a bank or financial services company, that allows cardholders to borrow funds with which to pay for goods and services with merchants that accept cards for payment
2. Debit card: debit card is a payment card that deducts money directly from a consumer’s checking account when it is used. Also called “check cards” or “bank cards,” they can be used to buy goods or services; or to get cash from an automated teller machine or a merchant who’ll let you add an extra amount onto a purchase
3. Coins: coins are precious metals made of silver, which have a defined amount of metallic content. Commodity money is money whose value comes from a commodity of which it is made. 
4. Bank notes: these are slips of paper or currency issued by the central bank.
5. Token money is a money where the face value of notes or coins is unrelated to the value of the material of which they are composed. The face value is more than the metal value.
6. Near money or quasi-money consists of highly liquid assets which are not cash but can easily be converted into cash. Examples are drafts, bonds, treasury bills, cheques and promissory notes.
7. Deposit money: this is a form of money kept in the accounts of the bank. A deposit is a financial term that means money held at a bank.

EVALUATION:    1. Define Money

2. State the functions of money
3. Highlight the qualities of money
4. Discuss the similarities and differences between money and other commodities
5. List four types of money

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively