TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE
STUDY
OBJECTIVES OF THE STUDY
SCOPE AND
LIMITATIONS
SIGNIFICANCE OF THE
STUDY
STATEMENT OF
PROBLEMS
DEFINITIONS OF
TERMS
CHAPTER TWO
REVIEW OF THE
LITERATURE
MONEY AND MONEY
MARKET
INSTRUCTMENT OF MONEY
MARKET
METHODS OF
TRANSACTION
THE ROLE OF MONEY
MARKET
CHAPTER THREE
SUMMARY OF
FINDINGS
RECOMMENDATION
CONCLUSION
BIBLIOGRAPHY
CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
The first batch of
treasury bills issued by the central bank of Nigeria (CBN) in April 1960. Saw
the birth of money market in Nigeria.
The market has experienced a
remarkable increase in size. Since that date with the addition of a number of
traditional short term money market entrustments. In circulation today are
eight of such instrument as contained in the subsequent chapter.
Money market can be defined as the
place of mechanism whereby funds are obtained. For short periods of time (from
one to one year) and financial assets representing short term claim are
exchanged.
As a section of the financial
market, it is made up of financial organization and dealers. They as a group
quicken the borrowing and lending of short-term money (bank credit and non bank
credit) by bringing under one umbrella those institutions with surplus funds,
which wish to lend on a short-term basis and those wishing to borrow.
In this country, money market is
composed of the central bank of Nigeria (CBN) commercial banks, merchants bank,
federal savings bank, insurance companies, the federal government and statutory
corporations.
Accounting for over 50% of average
total holdings of its instruments. Commercial banks dominated it in 1984.
It is important to note that
although the money market is so crucial to the workings of the Nigeria economy.
Is not geographically centered, as in the case with stock exchange.
Even in a developed country like
America for instance, one cannot find in the same physical sense can find the
flea market and farmers market Paris and loss ageless respectively.
However, this does not mean that
money market activities cannot be carried out at a specified area or street in
a more developed country a typical example is London.
In London, borrowers and lenders of
short-term money meet at Wall Street in London. They also trade on short-term
debt securities. Infact, money market is a loose network of dealers, bankers
and treasures of public and private corporations talking in very large round
numbers over telephone and personal contacts.
OBJECTIVES OF THE STUDY
Since there is no doubt
that money market serve as one of the major basis for assessing the economic
health of a country.
Moreover, that the activities are
influenced by the position of the countries foreign reserve, balance of payment
and the state of the economy in general it is now necessary to do the
following:
1. See
the results of money market on the rural and urban business transactions.
2. To
evaluate the scope of money market.
3. Understand
the conditions under which money market can operate effectively.
4. Ascertaining
its impact on the financial development of the nation.
5. To
draw attention of the government and the entire borrowers and lenders to the
need of expecting money market to have a sizeable and rapidly increasing
positive effects on the process of developing the less developed countries in
the foreseeable future.
6. To
highlight task facing money market and its major participate which must be
accomplished in the economy.
SIGNIFICANCE OF THE
STUDY
The work would be of
immense use to various players in the economy such players are researchers,
bankers, investors, government and general public. The benefit will be in the
following order:
1. It
will aid other researcher who want to carryout further research on the topic.
2. Some
recommendation in this work will direct authorized investors when they use them
as a guide and hence will help in reviving the nation’s economy.
3. To
commercial banks: commercial banks which most operate effectively must have a
sharp sense of the money market at any given moment an instinct for knowing
whether its prices as expressed in interest rates will go up or down, and
correspondingly, whether the demand for loans will increase or decrease.
4. Besides,
the investors will gain more from this study because it will help them with the
techniques or mechanisms of how to adapt to and manage changes which may be
either favorable or not as a result of the money market appraisal.
5. Above
all, operators in this market will know exactly in which areas of the exchange
or instrument is of more idea.
STATEMENT OF PROBLEMS
One of the problems is
that the money market could not collect its report for the work activities.
DEFINITIONS OF TERMS
MONEY:
Defined as anything that is generally accepted as a medium of exchange.
MARKET: A place
where goods are sold and bought by sellers and buyers respectively.
LENDERS: A person who allows
or gives money or any other property to another person on the understanding
that it will be returned.
BORROWER: A person who obtains something from
somebody temporarily.
BANKCREDIT: this means bank loans.
NOW BANK CREDIT: loan from other corporation
other corporation other than banks.
Department | Banking and Finance |
Project ID Code | BFN0189 |
Chapters | 3 Chapters |
No of Pages | 33 pages |
Methodology | Descriptive |
Reference | YES |
Format | Microsoft Word |
Price | ₦4000, $15 |
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Contact Us On | +2347043069458 |