Simplifying money ‘talks’ in Nigeria’s financial system
Money is very important to human lives. Right from infancy, money becomes a central commodity in the life of a man. Money plays a major role in the birth process, nursing and nurturing a child into adulthood. Even in adulthood, the pursuit of money is required to meet daily needs.
Riding on the importance of money to human life, the book, Understanding The Nigerian Financial System for Secondary School Students (AuthorHouse, U.S, 2016) was written. The author, who highlighted the need for people to have a better grasp of the financial system, said it is also important from an early age, hence the focus of the book on secondary school students.
Understanding The Nigerian Financial System for Secondary School Students, authored by Anthony Osae-Brown, the book detailed how money is earned and how to spend it in a way that enhances people’s welfare and ability to earn money in adulthood.
Divided into 20 chapters, the book begins on a soft note by defining the term financial system for a total understanding of the subject matter. To have a good knowledge of the financial system, the definition of money becomes paramount.
To find answers to the meaning of money, Osae-Brown goes back in time to highlight different things that have been used as money. He names salt, corn, rice among other commodities that have been used as trade-by-barter when there was no legal tender in the pre-colonial era. Later, cowries were used just as precious metals like gold, silver served as money. Much later, paper money and coins were introduced as legal tenders.
He argued that for anything to be considered as money, it must be acceptable by everyone. According to him, money must also be scarce because if everyone had money, nobody will desire it, hence it would no longer be called money.
In the second chapter titled ‘This Is the Financial Market’, Osae-Brown goes into detailed description of the financial market, using local market as an example. He aptly makes the comparison thus: “The financial market is like your local market. The major difference is that in your local market, you only buy items that you can see and touch, like tomatoes or yams. In the financial market you buy things you cannot see and touch, like bonds and stocks.”
In chapter three, the author defines what he calls “The Twin Daughters of the Financial Market”- the Money Market and the Capital Market. In a space of two pages, he is able to cover what the two markets entail including how they function. He goes on in chapter four to explain all the players in the financial system. These include the savers and investors, borrowers and issuers, the financial institutions and regulators.
Osae-Brown simplified his topic of discussion by asking simple questions, which makes the reader looks inward to provide answers for a better understanding of the financial system.
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