ARMA Autoregressive Moving Average Maximum Likelihood Estimation Monetary policy Fiscal policy Investment decisions Macroeconomic analysis

In this study, the main aim was to examine the influence of rate structure on the value of money in the Nigerian economy. Literature was reviewed with respect to the value of money and rate effect. The study utilized data from variables that examine rate effect on economic activities such as inflation rate, exchange rate, interest rate, monetary policy rate and lending rate. The focus of the study was the Nigerian economy. The study employed the ARMA Maximum Likelihood to estimate the data for empiricism and inferences. And also to estimate the hypothesized equation and the findings from the empirical investigation revealed Based on the results obtained from the study, the study concludes that in the Nigerian economy, the value of money is greatly impacted by two major variables of inflation rate and exchange rate. These variables are variables that affect the activities of the economy given that the economy is not a closed economy. The other variables greatly associated with the banking sector are not found to have significant effect on the value of money in the economy. The Study therefore recommends that the major rate to watch out for in the economy are the inflation rate and the exchange rate, that investors should use the inflation rate and exchange rate trend to determine the trends in their investment decision and finally, that policy makers should use as proximate target, the inflation rate and exchange rate in policy formulation whether it be fiscal policy or monetary policy.