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Economics: Name: Kailie Ramjohn Form Five (5) B Teacher: Sir Smith

The document discusses various topics related to economics including money demand and supply, stock exchanges, share markets, credit unions, development banks, insurance companies, mutual funds, building societies, investment trust companies, treasury bonds vs bills, corporate vs municipal bonds, and social security vs equity securities. It provides definitions and explanations of these terms and the roles they play in the economy such as raising capital for businesses, creating investment opportunities, and facilitating company growth.

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Malik Muhammad
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43 views11 pages

Economics: Name: Kailie Ramjohn Form Five (5) B Teacher: Sir Smith

The document discusses various topics related to economics including money demand and supply, stock exchanges, share markets, credit unions, development banks, insurance companies, mutual funds, building societies, investment trust companies, treasury bonds vs bills, corporate vs municipal bonds, and social security vs equity securities. It provides definitions and explanations of these terms and the roles they play in the economy such as raising capital for businesses, creating investment opportunities, and facilitating company growth.

Uploaded by

Malik Muhammad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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ECONOMICS

Name: Kailie Ramjohn


Form Five (5) B
Teacher: Sir Smith

What is Money?
Money is anything that is generally accepted as payment for a good or service and is used to
pay debts.

What is meant by Money Demand and Money Supply?

Money Supply
Money Supply is the total amount of money available in an economy at a specific period.

Money Demand
Money Demand is the desire of financial assets in the form of money, most likely cash or
bank deposits.

l Stock Exchange
• Raising capital for businesses
They help raise capital for businesses by selling shares to investors

• Profit sharing

They help both casual and professional stock investors, to get their share in the
wealth of profitable businesses

• Create investment opportunities formal investors


Small investors can also participate in the growth of large companies, by buying a
small number of shares
• Barometer of the economy
They maintain the stock indexes which are the indicators of the general trend in the
economy. They also regulate the stock price fluctuations.
• Facilitating company growth
They help companies to expand and grow by acquisition or fusion

l Share Market

• Share markets provide an economic boost through creation of liquidity


• Allow investors to put their savings to work earning returns

• Allows companies to raise capital through stock issues

l Credit Union

• Offer share draft accounts , share accounts, share certificates, credit and
debit cards, retirement accounts and lending programs
• Encourage prudent borrowing for big purchase items, emergencies or
educational needs by developing a regular habit for savings

• Federal credit unions insure members’ accounts through the National Credit
Union Share Insurance Fund

l Development Banks

• Promote and develop small scale industries


• To finance the development of the housing sector

• To assist I the growth of capital markets

• Help agriculture and rural development

• Facilitate entrepreneurship development

l Insurance Company

• Provide safety and security against particular events


• Generate financial resources by collecting premium and investing them in
government securities and stock

• Generates significant impact on the economy by mobilising domestic


savings

• Facilitates spreading of risk from the insured to insurer

l Mutual Funds

• Promote overall economic development


• Higher employment, income and output in the economy boost the revenue
collection of the government through taxes and other means

• Mutual Funds can also act as a market stabiliser

l Building Society

• Attract savings from its investing members


• Make loans for house purchases to its borrowing members

l Investment trust companies

• Research
• Trading and Sales

• Asset Management

• Wealth Management

• Securitised Products

l Treasury Bonds vs Treasury Bills

• Treasury Bonds - are long term bonds issued by treasuries. Their duration
lasts from 10 to 30 years
• Treasury Bills - is a short term debt obligation backed by treasuries with a
duration period of less than one year

l Corporate Bonds vs Municipal Bonds

• Corporate Bonds - is a debt security issued by a corporation and sold to


investors which is backed by the payment ability.

• Municipal Bonds - is a debt security issues by the state, municipality or


country to finance capital expenditures

l Social Security vs Equity Security

• Social Security - this is where people receive benefits or services in


recognition of contributions to an insurance company

• Equity Security - usually provide steady income as dividends but may


fluctuate significantly in their market value

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