LSC:S2 Money and Financial Institutions

Introduction When you make a decision to be an entrepreneur, the major aim of your business is to make profit and accumulate money. But also, you must be able to secure your money and get financial support when you have to, for example when you want to expand your business. The presence of money and financial institutions smoothens business operations. Money cannot be kept inside one's house to avoid troubles like theft, misuse and poor accountability, among others. Therefore, there are financial institutions that work alongside businesses on the issues of money. In this chapter, you will appreciate the importance of money and financial institutions in conducting business. There exist many types of financial institutions like the Central Bank, commercial banks and micro-finance institutions, among others. They all play different roles in business.