NABTEB ECONOMICS ESSAY

[23/05 9:10 am] ENGR NASER DAHER: (4a) Economic planning is a deliberate and conscious effort on the part of government to give meaningful direction to the economy by guiding and coordinating public policies towards efficient allocation of resources in order to ensure growth and development. (b) Reasons for economic planing… (i) To promote growth and development. Planing takes place to ensure that the e economy is able to achieve sustained growth and accelerated development. (ii) To ensure productivity. Government through planning helps to mobilize scarce resources needed for production. This has helped to increase the Level of productivity. (iii) To reduce rural urban migration. Planning are major tools by which government try to reduce rural and urban imbalances. Products to develop the rural areas are imbedded in the plans. (iv) To strengthen market mechanism. If the market mechanism is not perfect, the government can introduce policies to remove such imperfections. To mobilise and utilise resources to overcome such problems is a major reason for development planning. (v) To achieve economic self sufficient. A deliberate and conscious effort to give control and directions to any economy is aimed at achieving self reliance and sufficiency. Goods imported can now be produced locally. [23/05 9:10 am] ENGR NASER DAHER: (8a) Money market is a market for lending nd borrowing of short term fund for investment. It is a collective name given to various individuals or institutions that have money to lend or wish to borrow on a short term basis. (8bi) Facilities transfer of fund. Through money market excess fund can be transferred from one sector to another where it can be productively put to use. (ii) Promotes liquidity and safety of financial assets. Money market promote the liquidity and safety if financial assets. (iii) Encourage investment. It provide local investment outlets for reception of funds in Nigeria (iv) Use of surplus funds. Financial institutions can make use of their surplus funds for profitable purpose withing a short period of time. (c) (i) Central bank (ii) Finance houses (iii) Discount houses (iv) Commercial banks