Lesson Notes By Weeks and Term - Senior Secondary 2

Financial system

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Term: 3rd Term

Week: 3

Class: Senior Secondary School 2

Age: 16 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Financial accounting

Topic:-       Financial system

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

  1. Define financial system
  2. List the components of financial system
  3. State the functions of financial system
  4. State the features of 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 quoted and unquoted companies

Students pay attention

STEP 2

EXPLANATION

She defines and lists the components of financial system

 

Students pay attention and participates

STEP 3

DEMONSTRATION

She states the functions of financial system and the features of the financial 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

FINANCIAL SYSTEM

Financial system can be defined as a system that allows the exchange of funds between financial market participants such as lenders, investors and borrowers.

 

COMPONENTSOFFINANCIALSYSTEM

The following are components of financial system:

  1. Financial institution: they bring firms, investors and borrowers together.
  2. Financial market.
  3. Financial instruments.
  4. Financial services.

 

FUNCTIONSOFFINANCIALSYSTEM

  1. Capital Formation: financial system helps to mobilize savings which leads to capital formation. These are made available through banks, households and different financial institutions.
  2. Pooling of Funds: in a financial system, the savings of people are transferred from households to business organizations. With these, production increases and better goods are manufactured, which increases the standard of living of people.
  3. Facilitates Payment: the financial system offers convenient modes of payment for goods and services. Payment options like credit cards, debit cards, cheques, etc.    facilitate quick and easy transactions.
  4. Provides Liquidity: liquidity means the ability to convert into cash. The financial market provides the investor the opportunity to liquidate their investments, which are in instruments like shares, debentures, bonds, etc.

 

MONEY MARKET

Money market deals in short term loans, generally for a period of less than or equal to one year.

 

FUNCTIONSOFMONEYMARKET

  1. To maintain monetary balance between demand and supply of short term monetary transactions.
  2. It makes funds available to many units or entities engaged in diversified field of activities be it agriculture, industry, trade, commerce or any other business.
  3. By providing funds to developing sectors it helps in growth of the economy.
  4. It provides discounting of bills of exchange which facilitates growth of trade.

EVALUATION: 1. What is financial system?

  1. Mention 4 components of financial system.
  2. State 3 functions of financial system.
  3. State 3 features of money market.
  4. State 3 functions of money market.

 

  1. State four functions of capital market.

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively