Eco. 324 Online Quiz/Discussion (Finance and Financial System Issues)—23/2/2024
1.The financial system is concerned about money, credit and finance-the three terms are intimately related and sometimes used interchangeably. The term “finance” in our simple understanding is perceived as equivalent to ‘Money’. But finance exactly is not only money, it is also the source of providing funds for a particular activity. Credit on the other hands can be different from money and finance or used interchangeably with the two concepts mentioned above. Discuss
2.The economic development of a nation is reflected by the progress of the various economic units, broadly classified into corporate sector, government and household sector. While performing their activities these units will be placed in a surplus/deficit/balanced-budgetary situations. Discuss
3. A Financial System is a composition of various institutions, markets, regulations and laws, practices, money manager, analysts, transactions and claims and liabilities. Discuss
4.A financial system is a conglomerate of various markets, instruments, operators, and institutions that interact within an economy to provide financial services such as resource mobilization and allocation, financial intermediation and facilitation of foreign exchange transactions and foreign trade. Discuss
5. The financial system plays fundamental role in the growth and development of an economy. Discuss these roles.
6. The development of the financial system changes in tandem with the developments in the economy.
7. A Financial institution refers to an establishment that focuses on dealing with financial transactions, such as investments, loans and deposits. Conventionally, financial institutions are composed of organizations such as banks, trust companies, insurance companies and investment dealers. Almost everyone has deal with a financial institution on a regular basis. Discuss elaborately
8.A financial market is a market in which people and entities can trade financial securities, and other items of value at low transaction costs and at prices that reflect supply and demand. Clearly discuss and analyse these markets, their functions, performance evaluation and potential challenges.
9. A financial intermediary is typically an institution that facilitates the channeling of funds between lenders and borrowers indirectly. That is, savers (lenders) give funds to an intermediary institution (such as a bank), and that institution gives those funds to spenders (borrowers). This may be in the form of loans or mortgages. Discuss
10.The Nigerian financial system consists of banks and non-bank financial institutions which are regulated by the central bank of Nigeria (CBN) and the Federal Ministry of Finance, Nigeria deposit insurance corporation (NDIC), securities and exchange commission (SEC),the national insurance commission (NIC), the federal mortgage bank of Nigeria (FMBN) and other regulatory bodies in the financial world. Discuss this succinctly.
11. Insurance business in Nigeria is a serious business, yet it doesnt appeal to many citizens. Clearly discuss this and also analyse the types, functions, laws of insurance and characteristics of insurable interests.
12. What is the role of AMCON in National development?
