MONEY & BANKING

Introduction, Barter Trade and its Limitations
Money System and Characteristics of Money

By the end of the lesson, the learner should be able to:
Define money and banking. Explain barter trade concept. Outline merits and limitations of barter trade. Explain double coincidence of wants problem.

Brainstorming on money concepts. Role-play of barter trade scenarios. Group discussions on barter trade problems. Case study analysis of failed exchanges. Problem-solving on exchange challenges.

Real exchange items, Problem scenario cards, Case study materials, Charts
Different currencies, Genuine and sample notes, Magnifying glass, Regional currency samples

KLB Secondary Business Form 4, Pages 91-93

MONEY & BANKING

Functions of Money

By the end of the lesson, the learner should be able to:
Explain all functions of money: medium of exchange, measure of value, unit of account, store of value, standard of deferred payment, transfer of immovable assets. Apply functions in practical scenarios.

Practical trading exercises using money. Value comparison activities. Record keeping using money as unit. Case studies on savings and debt payments. Mock property transfer scenarios.

Goods for trading, Price tags, Recording sheets, Savings scenarios, Property document samples

KLB Secondary Business Form 4, Pages 95-96

MONEY & BANKING

Demand for Money and Supply of Money

By the end of the lesson, the learner should be able to:
Define liquidity preference. Explain transaction, precautionary and speculative motives for holding money. Define supply of money and identify its components. Analyze factors affecting money demand and supply.

Analysis of personal spending patterns. Case studies on emergency savings and speculation. Discussion on Central Bank role in money supply. Money circulation data analysis. Income and spending relationship exercises.

Budget sheets, Emergency scenarios, Investment charts, Money supply statistics, Central Bank reports

KLB Secondary Business Form 4, Pages 96-99

MONEY & BANKING

Banking System and Development of Banking
Commercial Banks and Their Services

By the end of the lesson, the learner should be able to:
Identify elements of Kenya's banking system. Explain hierarchy of banks. Trace history of banking development from goldsmith banking to modern banking. Understand banking evolution.

Mapping exercise of Kenya's banking system. Historical timeline creation of banking development. Story-telling of goldsmith banking origins. Group research on banking categories. Banking evolution discussions.

Banking system charts, Historical timeline materials, Bank category lists, Banking evolution charts
Mock bank materials, Deposit slips, Transfer forms, Safety boxes, Play money, Standing order cards

KLB Secondary Business Form 4, Pages 99-101

MONEY & BANKING

Commercial Bank Services and Foreign Exchange

By the end of the lesson, the learner should be able to:
Explain foreign exchange services, advisory services, trustee services, and guarantor roles. Demonstrate how banks act as intermediaries between savers and borrowers. Calculate foreign exchange rates.

Foreign exchange rate calculations. Advisory service role-plays. Trustee service case studies. Guarantor service demonstrations. Intermediary function illustrations.

Exchange rate charts, Advisory scenario cards, Trustee examples, Guarantor forms, Intermediary flow charts

KLB Secondary Business Form 4, Pages 103-104

MONEY & BANKING

Types of Bank Accounts - Current and Savings
Fixed Deposit Accounts and Account Opening Requirements

By the end of the lesson, the learner should be able to:
Define and compare current and savings accounts. Explain characteristics, advantages and disadvantages of each. Demonstrate account operations and requirements.

Current account opening simulation. Savings account operation practice. Cheque writing exercises. Interest calculation for savings. ATM usage demonstrations. Account comparison activities.

Account opening forms, Cheque books, ATM cards, Interest calculation sheets, Comparison charts
Investment scenarios, Calculation sheets, Account forms, ID documents, Photographs, Certificate samples

KLB Secondary Business Form 4, Pages 104-109

MONEY & BANKING

Non-Banking Financial Institutions (NBFIs)

By the end of the lesson, the learner should be able to:
Define NBFIs and their purpose. Explain Development Finance Institutions, Housing Finance Companies, SACCOs, Insurance Companies. Detail their functions and services.

Research on local NBFIs. SACCO membership simulation. Insurance policy analysis. Housing finance case studies. Group presentations on NBFI roles.

NBFI information sheets, SACCO materials, Insurance policies, Housing finance examples, Case study materials

KLB Secondary Business Form 4, Pages 111-113

MONEY & BANKING

Non-Banking Financial Institutions (NBFIs)

By the end of the lesson, the learner should be able to:
Define NBFIs and their purpose. Explain Development Finance Institutions, Housing Finance Companies, SACCOs, Insurance Companies. Detail their functions and services.

Research on local NBFIs. SACCO membership simulation. Insurance policy analysis. Housing finance case studies. Group presentations on NBFI roles.

NBFI information sheets, SACCO materials, Insurance policies, Housing finance examples, Case study materials

KLB Secondary Business Form 4, Pages 111-113

MONEY & BANKING

Micro-Finance, Agricultural Finance and Differences with Commercial Banks

By the end of the lesson, the learner should be able to:
Explain micro-finance and agricultural finance operations. Compare NBFIs with commercial banks in terms of services, target markets, and operations. Analyze their complementary roles.

Micro-finance loan simulation. Agricultural project financing exercises. Comparison table creation. Case study analysis of differences. Group discussions on operational contrasts.

Loan application forms, Agricultural projects, Comparison charts, Case studies, Analysis sheets

KLB Secondary Business Form 4, Pages 111-113

MONEY & BANKING

Central Bank Functions

By the end of the lesson, the learner should be able to:
Define Central Bank role in monetary control. Explain currency issuing, banker to banks, government banking, bank control, and clearing house functions. Demonstrate lender of last resort role.

Central Bank role-play activities. Currency management simulation. Inter-bank transaction examples. Government account simulation. Bank supervision demonstrations. Cheque clearing exercises.

Central Bank charts, Currency samples, Inter-bank forms, Government forms, Supervision checklists, Clearing examples

KLB Secondary Business Form 4, Pages 113-115

MONEY & BANKING

Central Bank Functions

By the end of the lesson, the learner should be able to:
Define Central Bank role in monetary control. Explain currency issuing, banker to banks, government banking, bank control, and clearing house functions. Demonstrate lender of last resort role.

Central Bank role-play activities. Currency management simulation. Inter-bank transaction examples. Government account simulation. Bank supervision demonstrations. Cheque clearing exercises.

Central Bank charts, Currency samples, Inter-bank forms, Government forms, Supervision checklists, Clearing examples

KLB Secondary Business Form 4, Pages 113-115

MONEY & BANKING

Monetary Policy Tools

By the end of the lesson, the learner should be able to:
Define monetary policy and its objectives. Explain bank rate, open market operations, cash/liquidity ratio, compulsory deposits, selective credit controls, directives and moral suasion. Demonstrate how these tools control money supply.

Monetary policy simulation exercises. Interest rate effect analysis. Securities trading demonstrations. Cash ratio calculations. Credit control scenarios. Policy tool comparison activities.

Policy charts, Interest rate examples, Securities samples, Calculation sheets, Control scenarios, Comparison tables

KLB Secondary Business Form 4, Pages 115-117

MONEY & BANKING

Modern Banking Trends

By the end of the lesson, the learner should be able to:
Analyze evolution in account types and their features. Explain computer use in banking and its benefits. Detail ATM operations and their impact on banking. Assess technological improvements in banking.

Modern banking technology demonstration. ATM operation simulation. Computer banking examples. Account feature comparison. Technology impact discussions.

ATM cards, Computer demonstrations, Modern banking examples, Technology comparison charts

KLB Secondary Business Form 4, Pages 117-119

MONEY & BANKING

Modern Banking Trends

By the end of the lesson, the learner should be able to:
Explain mobile banking, e-banking, and M-pesa services. Detail credit facilities evolution and customer care improvements. Analyze mobile banks and Pesa Point services. Assess banking accessibility improvements.

Mobile money demonstrations. E-banking simulations. Digital payment exercises. Credit application processes. Customer service role-plays. Mobile bank simulation.

Mobile phones, E-banking platforms, Digital payment examples, Credit forms, Service scenarios, Mobile bank materials

KLB Secondary Business Form 4, Pages 119-121

INFLATION

Introduction to Inflation and Deflation

By the end of the lesson, the learner should be able to:
Define inflation as persistent rise in general price levels. Distinguish between inflation and deflation. Explain impact on purchasing power and money value. Analyze real-world examples of inflation.

Brainstorming on price changes students have observed. Comparison of prices over different time periods. Case studies on countries experiencing inflation. Discussion on purchasing power changes with price examples.

Price comparison charts from different years, Country inflation examples, Purchasing power calculation sheets, Real product price data

KLB Secondary Business Form 4, Pages 144-145

INFLATION

Consumer Price Index (CPI) Concepts

By the end of the lesson, the learner should be able to:
Define Consumer Price Index and its purpose. Explain index numbers and their importance. Identify factors in CPI construction: basket selection, base period, price data. Understand CPI as inflation measurement tool.

Analysis of typical consumer basket of goods. Selection of base year with stable prices. Price data collection simulation. Discussion on representativeness of basket items. Index number concept demonstration.

Sample consumer baskets, Base year price data, Price collection sheets, Index calculation examples, Consumer survey materials

KLB Secondary Business Form 4, Pages 144-146

INFLATION

CPI Calculation - Simple Average Method

By the end of the lesson, the learner should be able to:
Calculate price relatives for individual commodities. Compute Consumer Price Index using simple average method. Interpret CPI results and their meaning. Practice with multiple commodities and time periods.

Step-by-step CPI calculation exercises. Price relative computation for various goods. Simple average CPI calculation practice. Interpretation of results meaning for purchasing power. Group work on different commodity baskets.

Price data for multiple commodities, Calculation worksheets, Calculators, CPI formula charts, Practice problem sets

KLB Secondary Business Form 4, Pages 146-147

INFLATION

CPI Calculation - Weighted Average Method
Types of Inflation and Demand-Pull Inflation

By the end of the lesson, the learner should be able to:
Understand importance of weighting in CPI calculation. Assign weights to different commodities based on consumption patterns. Calculate weighted average CPI. Compare simple vs weighted average results.

Weight assignment exercises based on family budgets. Weighted CPI calculation practice with real data. Comparison between simple and weighted average methods. Analysis of why weighting gives more accurate results.

Family budget examples, Weight assignment sheets, Weighted calculation templates, Comparison tables, Advanced calculation problems
Market simulation materials, Government spending examples, Money supply charts, Income increase scenarios, Demand-pull diagrams

KLB Secondary Business Form 4, Pages 147-148

INFLATION

More Causes of Demand-Pull Inflation

By the end of the lesson, the learner should be able to:
Explain additional causes: general shortages, increased consumer expenditure, population growth effects. Analyze expectation-driven demand increases. Demonstrate how shortages pull prices upward.

Shortage simulation exercises creating artificial scarcity. Analysis of population growth impact on demand. Expectation-driven buying behavior case studies. Consumer expenditure pattern analysis and price impact.

Shortage simulation materials, Population growth data, Expectation scenario cards, Consumer expenditure charts, Supply-demand graphs

KLB Secondary Business Form 4, Pages 149-150

INFLATION

Cost-Push Inflation and Its Causes
More Cost-Push Causes and Subsidy Effects

By the end of the lesson, the learner should be able to:
Define cost-push inflation where costs push prices upward. Identify causes: wage increases, tax increases, profit margin increases. Explain imported inflation through input cost increases.

Cost-push inflation demonstrations using production scenarios. Wage-price spiral simulation exercises. Tax impact on production costs analysis. Import price increase effects on local production costs.

Production cost scenarios, Wage-price spiral charts, Tax impact examples, Import price data, Cost-push diagrams
Manufacturing cost examples, Subsidy impact data, Profit margin scenarios, Input cost charts, Comprehensive comparison tables

KLB Secondary Business Form 4, Pages 150-152

INFLATION

Levels of Inflation

By the end of the lesson, the learner should be able to:
Distinguish between moderate, galloping, and hyper-inflation. Explain characteristics and percentage ranges. Analyze historical examples of different inflation levels. Assess economic impacts of each level.

Classification exercises using real country data. Historical case studies: Germany 1923 hyper-inflation. Moderate inflation benefits analysis. Comparison of inflation levels and their economic effects.

Historical inflation data, Germany 1923 case study, Country comparison charts, Inflation level classification sheets

KLB Secondary Business Form 4, Pages 152-153

INFLATION

Positive Effects of Inflation

By the end of the lesson, the learner should be able to:
Analyze benefits for debtors paying less in real terms. Explain how sellers can earn more profits. Demonstrate motivation to work harder. Show increased production and better resource utilization.

Debtor-creditor scenario analysis with inflation impact. Seller profit calculation exercises during inflation. Work motivation case studies during inflationary periods. Resource utilization efficiency examples during inflation.

Debtor-creditor scenarios, Profit calculation sheets, Work motivation examples, Resource utilization cases, Real vs nominal value charts

KLB Secondary Business Form 4, Pages 153-154

INFLATION

Negative Effects of Inflation

By the end of the lesson, the learner should be able to:
Explain reduction in profits due to decreased sales volume. Analyze time wastage in price shopping. Demonstrate conflicts between employers and employees. Show decline in living standards.

Sales volume decline simulation during price increases. Time cost analysis of shopping around for prices. Employer-employee wage negotiation role-plays. Living standard decline calculations with fixed incomes.

Sales simulation materials, Time cost analysis sheets, Role-play scenarios, Living standard calculation examples, Wage negotiation materials

KLB Secondary Business Form 4, Pages 154-155

INFLATION

Negative Effects of Inflation

By the end of the lesson, the learner should be able to:
Explain reduction in profits due to decreased sales volume. Analyze time wastage in price shopping. Demonstrate conflicts between employers and employees. Show decline in living standards.

Sales volume decline simulation during price increases. Time cost analysis of shopping around for prices. Employer-employee wage negotiation role-plays. Living standard decline calculations with fixed incomes.

Sales simulation materials, Time cost analysis sheets, Role-play scenarios, Living standard calculation examples, Wage negotiation materials

KLB Secondary Business Form 4, Pages 154-155

INFLATION

More Negative Effects and Economic Impact

By the end of the lesson, the learner should be able to:
Analyze losses to creditors and retardation of economic growth. Explain adverse effects on balance of payments. Demonstrate loss of confidence in monetary system. Show discouragement of savings.

Creditor loss calculations in real terms. Economic growth impact analysis with case studies. Balance of payments deterioration examples. Monetary system confidence erosion scenarios. Savings discouragement analysis.

Creditor loss examples, Economic growth data, Balance of payments charts, Monetary confidence indicators, Savings impact studies

KLB Secondary Business Form 4, Pages 155-156

INFLATION

Controlling Inflation - Monetary Policy Tools

By the end of the lesson, the learner should be able to:
Define monetary policy for inflation control. Explain Central Bank tools: bank rate increases, open market operations. Demonstrate cash ratio and compulsory deposits effects.

Monetary policy simulation with Central Bank role-play. Interest rate impact exercises on borrowing and spending. Open market operations demonstrations. Cash ratio calculation and credit impact analysis.

Central Bank simulation materials, Interest rate impact charts, Securities trading examples, Cash ratio calculation sheets

KLB Secondary Business Form 4, Pages 156-157

INFLATION

Controlling Inflation - Monetary Policy Tools

By the end of the lesson, the learner should be able to:
Define monetary policy for inflation control. Explain Central Bank tools: bank rate increases, open market operations. Demonstrate cash ratio and compulsory deposits effects.

Monetary policy simulation with Central Bank role-play. Interest rate impact exercises on borrowing and spending. Open market operations demonstrations. Cash ratio calculation and credit impact analysis.

Central Bank simulation materials, Interest rate impact charts, Securities trading examples, Cash ratio calculation sheets

KLB Secondary Business Form 4, Pages 156-157

INFLATION

More Monetary Policy Tools and Fiscal Policy

By the end of the lesson, the learner should be able to:
Explain selective credit controls and directives. Detail moral suasion by Central Bank. Define fiscal policy for inflation control. Analyze government spending reduction and tax policy effects.

Credit control scenario exercises. Central Bank directive simulations. Government spending impact analysis on inflation. Tax policy effects on consumer spending and production costs.

Credit control scenarios, Directive examples, Government spending data, Tax policy impact charts, Fiscal policy simulation materials

KLB Secondary Business Form 4, Pages 156-158

INFLATION

Fiscal Policy Measures and Production Solutions

By the end of the lesson, the learner should be able to:
Explain reducing taxes on production to control cost-push inflation. Demonstrate subsidizing production effects. Show government production of scarce commodities. Analyze comprehensive fiscal policy approaches.

Production tax reduction impact analysis. Subsidy effect calculations on final prices. Government production case studies. Comprehensive fiscal policy design exercises for inflation control.

Production tax examples, Subsidy calculation sheets, Government production cases, Policy design templates, Impact analysis charts

KLB Secondary Business Form 4, Pages 157-158

INFLATION

Statutory Measures for Inflation Control

By the end of the lesson, the learner should be able to:
Explain wage and salary controls to prevent cost-push inflation. Demonstrate price control mechanisms. Detail import restriction methods. Analyze hire purchase and credit term controls.

Wage control policy analysis and effects. Price control implementation exercises. Import restriction case studies and alternatives. Credit term control simulations and consumer impact.

Wage control examples, Price control policies, Import restriction data, Credit control scenarios, Policy implementation cases

KLB Secondary Business Form 4, Pages 158-159

INFLATION

Statutory Measures for Inflation Control

By the end of the lesson, the learner should be able to:
Explain wage and salary controls to prevent cost-push inflation. Demonstrate price control mechanisms. Detail import restriction methods. Analyze hire purchase and credit term controls.

Wage control policy analysis and effects. Price control implementation exercises. Import restriction case studies and alternatives. Credit term control simulations and consumer impact.

Wage control examples, Price control policies, Import restriction data, Credit control scenarios, Policy implementation cases

KLB Secondary Business Form 4, Pages 158-159

INFLATION

Export Controls and Comprehensive Control Strategies

By the end of the lesson, the learner should be able to:
Explain export controls to prevent domestic shortages. Analyze combination of multiple control measures. Evaluate effectiveness of different approaches. Design comprehensive anti-inflation strategy.

Export control case studies and domestic market effects. Multi-pronged control strategy design exercises. Effectiveness evaluation of historical control measures. Comprehensive strategy presentations by groups.

Export control examples, Multi-strategy templates, Historical effectiveness data, Strategy design sheets, Presentation materials

KLB Secondary Business Form 4, Pages 158-159

INTERNATIONAL TRADE

Introduction, Types and Advantages

By the end of the lesson, the learner should be able to:
Define international trade. Distinguish between bilateral and multilateral trade. State advantages of international trade. Explain how trade promotes specialization and employment.

Q/A session on local trading experiences; Brainstorming on goods Kenya exports/imports; Group discussion on trade advantages with real examples; Analysis of technology transfer cases.

World map, newspapers with trade reports, charts showing Kenya's trading partners, business magazines

KLB Secondary Business Studies Form 4, Pages 162-164

INTERNATIONAL TRADE
TERMS OF TRADE

Disadvantages of International Trade
Computing Terms of Trade

By the end of the lesson, the learner should be able to:
Identify disadvantages of international trade. Explain how trade can lead to local industry collapse. Analyze imported inflation concept. Discuss cultural and sovereignty impacts.

Guided discussion on negative trade effects; Case study analysis of textile industry challenges; Q/A on dependency problems; Group work on cultural changes due to globalization.

Newspaper cuttings on industry closures, case study materials, charts showing trade impacts
Calculators, statistical data sheets, worked examples, formula charts

KLB Secondary Business Studies Form 4, Pages 164

TERMS OF TRADE

Factors Affecting Terms of Trade

By the end of the lesson, the learner should be able to:
Explain factors causing differences in terms of trade between countries. Analyze impact of commodity nature on trade terms. Discuss demand changes and trade restrictions effects. Evaluate world economic order influences.

Detailed exposition with country examples; Case study analysis of Kenya vs developed countries; Group discussions on commodity price variations; Q/A on trade restriction impacts.

Case study materials, charts comparing different economies, business magazines

KLB Secondary Business Studies Form 4, Pages 167-168