Class: Senior Secondary School 2 (SS2 / SSS 2)
Term: Third Term
Week: 3
Age: 16 years
Duration: 45 minutes
Subject: Store Management
Curriculum Theme: Financial Management
Previous Lesson: Money Market: Meaning, Regulators and Instruments.
Topic: Investment cont.
Subject Matter: Meaning of money market (market for short-term funds), instrument of trade on money market (bill of exchange), institution involved in money market (central bank, commercial bank, discount houses, finance houses).

Specific Objectives

By the end of the lesson, pupils should be able to:

Cognitive Domain:

Define the money market.
Identify the instruments of trade in the money market.
List the institutions involved in the money market.

Affective Domain:

Appreciate the importance of the money market in facilitating short-term investments.
Value the roles of different institutions in the money market.

Psychomotor Domain:

Explain the features and use of a bill of exchange.
Outline the functions of the various institutions in the money market.

Discuss with peers how the money market contributes to economic stability.

Reference Materials

The following resources were used in planning this lesson:

Senior Secondary Schools Education Curriculum
State Unified Scheme of Work
Egbe, E.N. (2018). Comprehensive Business Studies for Senior Secondary Schools 2. Aflon Limited.
https://www.investopedia.com/terms/m/moneymarket.asp
https://www.corporatefinanceinstitute.com/resources/knowledge/trading-investing/bill-of-exchange/

Instructional Materials

The teacher will teach this lesson with the aid of:

Cardboard paper showing institutions involved in the money market.
Whiteboard and markers.

Rationale for the Lesson

Understanding the money market helps pupils learn how businesses and governments raise and manage short-term funds. This knowledge is important for understanding financial operations and the broader economy, which is relevant for effective store management and financial decision-making.

Prerequisite/Previous Knowledge

Pupils should have a basic understanding of investment, financial institutions, and the concept of a market.

Lesson Content/Board Summary

Investment: Money Market

Meaning of Money Market

The money market is a segment of the financial market where financial instruments with high liquidity and short maturities (typically less than one year) are traded. It is used by participants to borrow and lend short-term funds.

Instruments of Trade on Money Market

These are the financial tools used to facilitate transactions in the money market.

Bill of Exchange: A written order by one party (the drawer) instructing another party (the drawee) to pay a definite sum of money to a third party (the payee) at a future date or on demand. It is a negotiable instrument used for short-term financing and trade.

How a Bill of Exchange is Used:

A seller (drawer) of goods issues a bill of exchange to a buyer (drawee) for payment.
The buyer accepts the bill, agreeing to pay the stated amount on the due date.
The seller can hold the bill until maturity or discount it with a bank or discount house to get immediate cash, minus a discount fee.
At maturity, the holder of the bill presents it to the buyer for payment.

Institutions Involved in Money Market

These are the key players that facilitate the operations of the money market:

Central Bank: The apex financial institution that regulates the money supply, supervises commercial banks, and acts as a banker to the government and other banks. It influences interest rates and ensures financial stability.
Commercial Banks: Financial institutions that accept deposits, provide loans, and offer various financial services to individuals and businesses. They are active participants in the money market, lending and borrowing short-term funds.
Discount Houses: Specialized financial institutions that deal in short-term money market instruments, particularly by discounting bills of exchange and treasury bills. They provide liquidity to the money market.
Finance Houses: Non-bank financial institutions that provide various financial services, including consumer finance, equipment leasing, and short-term loans. They also participate in the money market by lending and borrowing funds.

Teaching Methods/Instructional Techniques

Discussion, Lecture, Demonstration, Question and Answer, Visual Aids

Instructional Procedures

Step 1: Introduction

Time: 5 minutes
Teaching Skill: Set Induction
Teacher’s Activity: The teacher reviews the previous lesson on investment and introduces the concept of the money market as a continuation, asking pupils what they understand by ‘market’.
Pupils’ Activity: Pupils respond to questions and recall previous knowledge.
Learning Point: Pupils connect the new topic to prior learning and are prepared for the lesson.

Step 2: Meaning of Money Market

Time: 7 minutes
Teaching Skill: Explanation
Teacher’s Activity: The teacher defines the money market as a market for short-term funds and explains its characteristics.
Pupils’ Activity: Pupils listen, take notes, and ask questions for clarification.
Learning Point: Pupils understand the definition and basic nature of the money market.

Step 3: Instruments of Trade on Money Market (Bill of Exchange)

Time: 10 minutes
Teaching Skill: Demonstration/Explanation
Teacher’s Activity: The teacher explains the bill of exchange as a key instrument, detailing its features (drawer, drawee, payee, maturity date) and illustrating how it is used with a simple example.
Pupils’ Activity: Pupils listen attentively, take notes, and identify the parties involved in a bill of exchange.
Learning Point: Pupils comprehend the concept and practical application of a bill of exchange.

Step 4: Institutions Involved in Money Market – Central Bank

Time: 5 minutes
Teaching Skill: Discussion
Teacher’s Activity: The teacher discusses the Central Bank’s role in the money market, using the cardboard paper to highlight its position.
Pupils’ Activity: Pupils identify the Central Bank as a major player and state some of its functions.
Learning Point: Pupils understand the regulatory and influential role of the Central Bank.

Step 5: Institutions Involved in Money Market – Commercial Banks

Time: 5 minutes
Teaching Skill: Explanation
Teacher’s Activity: The teacher explains the active participation of commercial banks in the money market, emphasizing their role in lending and borrowing short-term funds.
Pupils’ Activity: Pupils state the functions of commercial banks in the money market.
Learning Point: Pupils understand the operational role of commercial banks.

Step 6: Institutions Involved in Money Market – Discount and Finance Houses

Time: 5 minutes
Teaching Skill: Elaboration
Teacher’s Activity: The teacher further explains the specific roles of discount houses and finance houses in providing liquidity and specialized services within the money market.
Pupils’ Activity: Pupils differentiate between the roles of discount houses and finance houses.
Learning Point: Pupils grasp the specialized functions of these institutions.

Step 7: Evaluation/Review

Time: 5 minutes
Teaching Skill: Questioning/Assessment
Teacher’s Activity: The teacher evaluates the learning by asking the following questions:

What is the money market?
Mention two characteristics of the money market.
Explain what a bill of exchange is and how it is used.
List three institutions involved in the money market.

Pupils’ Activity: Pupils answer orally and in writing.
Learning Point: Pupils demonstrate understanding of the lesson.

Step 8: Conclusion

Time: 3 minutes
Teaching Skill: Summarization
Teacher’s Activity: The teacher summarizes the key points of the lesson, reiterating the importance of the money market in financial transactions and business operations. The teacher assigns homework: “Research other instruments traded in the money market apart from the bill of exchange.”
Pupils’ Activity: Pupils listen to the summary and copy the homework assignment.
Learning Point: Pupils consolidate their understanding and are encouraged to research further.

Lesson Keywords

Money Market – A financial market for short-term borrowing and lending.
Bill of Exchange – A written order to pay a definite sum of money at a future date.
Central Bank – The apex financial institution regulating money supply.
Commercial Bank – Financial institutions accepting deposits and giving loans.
Discount House – Specialized institutions dealing in short-term money market instruments.
Finance House – Non-bank institutions providing various financial services.

Differentiation

For pupils who grasp concepts quickly, the teacher can encourage them to research the differences between the money market and the capital market. For those needing more support, the teacher will provide simplified definitions and additional examples of money market transactions.

Note for teachers using this lesson plan

Encourage pupils to relate the concepts to real-life financial scenarios in Nigeria. Use visual aids like diagrams of a bill of exchange to enhance understanding. Emphasize the practical implications of money market operations for businesses and individuals.