Financial Institutions

Contents & notes: what this topic covers

Under Financial Institutions, the JAMB Economics syllabus expects you to study:

• 13. Financial Institutions a. Types and functions of financial institutions (traditional, central bank, mortgage banks, merchant banks, insurance companies, building societies);
• b. The role of financial institutions in economic development;
• c. Money and capital markets d. Financial sector regulations e. Deposit money banks and the creation of money f. Monetary policy and its instruments g. Challenges facing financial institutions in Nigeria.

Study notes & guidance

Study Financial Institutions using a recommended Economics textbook that follows the JAMB syllabus. Work through the contents listed above one by one, make brief notes in your own words, and then practise as many questions on this topic as you can — in Economics, understanding and steady practice matter far more than memorising. Use the objectives below as a checklist: if you can do each one confidently, you have mastered this topic.

Objectives — candidates should be able to

After studying Financial Institutions, you should be able to:

1. (i) identify the types and functions of financial institutions; (ii) explain the roles of financial institutions in economic development; (iii) distinguish between the money and capital markets; (iv) identify the various financial sector regulators and their functions; (v) explain the money creation process and its challenges; (vi) examine the various monetary policy instruments and their effects; (vii) appraise the challenges facing the financial institutions in Nigeria.

These objectives are from the official JAMB syllabus. Use them as a checklist — if you can do each one confidently, you have mastered this topic.

Source: official JAMB UTME Economics syllabus (IBASS, jamb.gov.ng). Reproduced for study use. Last checked: 17 Sept 2026. Always confirm the current syllabus on the official portal.