An analysis into the involvement of adults in the financial sector.
Purpose of Investigation
The purposes of this research are:
1. To identify the association of adults with the formal sector of Tobago. 2. To determine the involvement of adults in the informal sector of Tobago. 3. To determine the factors affecting the involvement of adults in the financial sector.
Methods of Investigations
The primary source of information used in this project is:
1. Questionnaire. Thirty-one questionnaires were distributed to residents of Canaan. All the persons responding were eighteen and over.
Some limitations faced are:
* Villagers misunderstanding some of the questions.
* Villagers not taking the questionnaire seriously.
* Locating responders to retrieve questionnaires was difficult since they were not known personally.
Presentation of Data
Factors Affecting Choice in Stock Market
Frequency of Use of Stock Market Service
Analysis and Interpretation of Data
Description of Financial System in Trinidad and Tobago
The financial system is a network of savers, investors and financial institutions that work together to ensure that savings are transferred to investors. The financial system consists of two sectors: formal and informal. The formal sector includes all the financial institutions that are regulated officially, such as, commercial banks, credit unions, central bank, stock exchange and insurance companies. The informal sector includes all financial activities that are not under official control, such as, sou sou, money lending. The functions of the Central Bank are:
* maintaining the exchange rate of the local currency
* solely authorizing the issuing of money
* acting as treasurer to government; making payments and receiving taxes * acting as a banker to commercial banks by managing their banking systems * assisting commercial banks that are facing financial problems * assisting development of money markets
A commercial bank is a financial institution that is engaged in money transmission services and is jointly owned by shareholders. In Tobago there are four commercial bank; First Citizens Bank, Scotiabank, Republic Bank and Royal Bank of Trinidad and Tobago. A credit union is a cooperative association whose members can obtain low-interest loans from their combined savings. There are nine credit unions in Tobago, these are; Lambeau Credit Union, Bethel Credit Union, Mt. Pleasant Credit Union, Thawe Credit Union, Whim Credit Union, Tunico Credit Union, Total Holdings Credit Union, Runnemede Credit Union and People’s Credit Union. The Trinidad and Tobago Unit Trust Corporation is a mutual company that dominates the mutual fund market in Trinidad and Tobago. There is a branch in Scarborough, Tobago. The Western Union Company is a financial services and communications company. There are several locations in Tobago, including in Crown Point, Scarborough and Canaan. An insurance company provides financial protection for property, life, health, etc., against contingencies, such as death, loss or damage. There are insurance companies in Tobago; ScotiaLife, Colonial Life Insurance Company, The Beacon and Guardian Life. A stock exchange is an organized market facilitating the purchase and sale of securities, operated by professional stockbrokers. The Trinidad and Tobago Stock Exchange is located in Port-of-Spain.
Market Structure refers to the type of competition faced by firms in an industry. The four main market structures are perfect competition, monopolistic competition, oligopoly and monopoly.
| No. of Buyers and Sellers
| Type of Product
| Control of Price
| Barriers to Entry
| Perfect Competition
| Many buyers and sellers
| Price Taker
| No barriers
| Monopolistic competition
| Many buyers and sellers
| Price Setter
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