THE ROLE OF MONEY MARKET IN THE DEVELOPMENT OF THE NIGERIA ECONOMY

  • Type: Project
  • Department: Accounting
  • Project ID: ACC1628
  • Access Fee: ₦5,000 ($14)
  • Chapters: 5 Chapters
  • Pages: 75 Pages
  • Methodology: Ordinary Least Square
  • Reference: YES
  • Format: Microsoft Word
  • Views: 984
  • Report This work

For more Info, call us on
+234 8130 686 500
or
+234 8093 423 853
THE ROLE OF MONEY MARKET IN THE DEVELOPMENT OF THE NIGERIA ECONOMY
CHAPTER ONE

INTRODUCTION
 BACKGROUND OF THE STUDY
There are various financial markets which are institutional arrangements that facilitate the intermediation of fund in an economy. The financial market is segmented into two (i) the money market which also deals in short-term fund and (ii) the capital market that is for long-term dealings in loan able fund (Anyanwu 1966). The channeling of fund in an economy is driven by the difference in the size of the fund, maturity and risk attached to the transfer. The basis of distinction between the money market and the capital market lies in the degree of liquidity of instrument bought and sold in each of the market, which can be further sub-divided into the primary and secondary markets. Primary market is concerned with the raising of new funds, while the secondary market is for the sale and purchasing of existing securities, thus, enabling savers who purchased securities when they had surplus to recover their money when they are in need of cash (Afolabi 1991).
 Money markets play a key role in bank’s liquidity management and the transmission of monetary policy. In normal times, money markets are among them most liquid in the financial sector. By providing the appropriate instrument and partners for liquidity trading, the money market allows the refinancing of short and medium term position and facilitates the mitigation of your business liquidity risk.
The banking system and the money market represent the exclusive setting monetary policy operates in. a developed, active and efficient inter bank market enhances the efficiency of central bank’s monetary policy, transmitting it impulses  into the economy best. Thus, the development of the money market smoothes the progress of financial intermediation and boosts lending to economy, hence improving the country’s economic and social welfare. Therefore, the development of the money market is in all stakeholders.
  STATEMENT OF THE PROBLEM
The role of the financial market in the development of the real sector and the economy at large can not be overemphasized. A critical characteristic of the money market is that, it should be deep and broad so as to absorb large volume of transactions without significant effect in security prices and interest. This characteristic requires that there exist many active market participant such that the transaction of an individual investor will have just infinitesimal (very small) effect on security prices and interest rates. The characteristic also requires that there are many varieties of security so as to ensure that there are always alternative investment instruments available to satisfy the respective return-risk desires of investors in the market.
A money market that has depth and breadth will be informational as well as operationally efficient and will contribute significantly to the growth of the economy. Iyiegbuniwe (2005) opines that although the Nigerian money market has experienced significant growth both in the breadth of securities as well as the volume if trading since the liberalization of the financial system in 1986, it still need to be deepened further to achieve the required vibrancy that is expected of a money market. This is not to say that the Nigeria money market is ineffective, much have been said and written about the Nigerian capital market but the reversal is the case for the money market in the country.
Therefore, there is the need to examine the crucial market and evaluate its performance in terms of its contribution to economic development.
 RESEARCH QUESTIONS
Is there a relationship between monetary policy and economic growth in Nigeria?
Is there a relationship between Bond issued and economic growth in Nigeria?
Is there a relationship between Treasury bills and economic growth in Nigeria?
 OBJECTIVE OF THE STUDY
The specific objectives of this study are to determine;
The impact of the money market on economic growth in Nigeria.
The impact of money market variable such as Treasuring bill, Bonds issued, fixed capital formation and monetary policy rate on the growth of the Nigeria economy.
To evaluate the contribution of the Nigerian money market to the economic growth of the country.
 HYPOTHESIS OF STUDY
The following are the hypothesis for this study;
Treasuring bill has a significant effect in enhancing rapid economic growth in Nigeria.
Bond issued has a strong impact in economic growth in Nigeria.
Monetary policy rate has a strong and positive linkage with economic growth.
The higher he fixed capital information the higher the rate of economic growth in the Nigerian economy.
 SCOPE OF STUDY:
This study basically examines the relationship between money market and economic growth in Nigeria. Money market variables will be used from the year 1990-2011.
 SIGNIFICANT OF THE STUDY:
This study is significant in several aspect, this includes;
This study will be a reference material for further study on the money market and economic growth in Nigeria.
This bank and other business executives will be well guided on the contribution on money market of the development if the Nigeria economy.
This study will be a reading companion to potential investor in the economy.
This outcome of the study will be added to the existing body of knowledge on the money market.

THE ROLE OF MONEY MARKET IN THE DEVELOPMENT OF THE NIGERIA ECONOMY
For more Info, call us on
+234 8130 686 500
or
+234 8093 423 853

Share This
  • Type: Project
  • Department: Accounting
  • Project ID: ACC1628
  • Access Fee: ₦5,000 ($14)
  • Chapters: 5 Chapters
  • Pages: 75 Pages
  • Methodology: Ordinary Least Square
  • Reference: YES
  • Format: Microsoft Word
  • Views: 984
Payment Instruction
Bank payment for Nigerians, Make a payment of ₦ 5,000 to

Bank GTBANK
gtbank
Account Name Obiaks Business Venture
Account Number 0211074565

Bitcoin: Make a payment of 0.0005 to

Bitcoin(Btc)

btc wallet
Copy to clipboard Copy text

500
Leave a comment...

    Details

    Type Project
    Department Accounting
    Project ID ACC1628
    Fee ₦5,000 ($14)
    Chapters 5 Chapters
    No of Pages 75 Pages
    Methodology Ordinary Least Square
    Reference YES
    Format Microsoft Word

    Related Works

    INTRODUCTION: - The money market is place or mechanism by which short – term funds or exchanging financial assets representing short-term claim are obtained .  A money market can be simply defined as a market  consisting of financial institutions and other dealers in short term money and credit who either want to lend or borrow money .As a... Continue Reading
    PROPOSAL The basic objective of this study is “ The Role of the Nigeria money market in Indigenising the credit base of the Economy’’ This project revealed as much as possible main reasons for the establishment of the Nigeria money market and the Role they have played in the Indigenising the credit base of the economy. This... Continue Reading
    INTRODUCTION: - The money market is place or mechanism by which short – term funds or exchanging financial assets representing short-term claim are obtained . A money market can be simply defined as a market consisting of financial institutions and other dealers in short term money and credit who either want to lend or borrow money .As a group ,... Continue Reading
    PROPOSAL The basic objective of this study is “ The Role of the Nigeria money market in Indigenising the credit base of the Economy’’ This project revealed as much as possible main reasons for the establishment of the Nigeria money market and the Role they have played in the Indigenising the credit base of the economy.  This project is... Continue Reading
    PROPOSAL The basic objective of this study is “ The Role of the Nigeria money market in Indigenising the credit base of the Economy’’ This project revealed as much as possible main reasons for the establishment of the Nigeria money market and the Role they have played in the Indigenising the credit base of the economy. This project is... Continue Reading
    INTRODUCTION: - The money market is place or mechanism by which short – term funds or exchanging financial assets representing short-term claim are obtained . A money market can be simply defined as a market consisting of financial institutions and other dealers in short term money and credit who either want to lend or borrow money .As a group ,... Continue Reading
    . 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... Continue Reading
    (A CASE STUDY OF CENTRAL BANK OF NIGERIA, ABUJA) ABSTRACT This research work looked at the rate of the Central Bank of Nigeria in the development of money market. A good knowledge of the strategies which the bank uses in implementing and instruction the dwindling economy... Continue Reading
    ABSTRACT This research work will take a look at the role of the central Bank of Nigeria in the development of money market. It will also cover the constraints the bank faces in implementing the government programmes. The role of Central Bank of Nigeria in developing the... Continue Reading
    THE ROLE OF THE CENRTAL BANK OF NIGERIA IN THE DEVELOPMENT OF MONEY MARKET ABSTRACT This research work will take a look at the rate of the Central Bank of Nigeria in the development of money market. A good knowledge of the strategies which the bank uses in implementing and instruction the dwindling economy will be identified. It will also cover... Continue Reading
    Call Us
    Get this work
    whatsappWhatsApp Us