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Money and Banking
Paper Code:
ECO 201
Credits:
3
Contact Hours:
45.00
Max. Marks:
100.00
Objective:
- To grasp the concept of money and the foundation of monetary theory; and
- To familiarize the students with various kinds of banks, with special reference to India.
6.00
Unit I:
Money
- Definition, Types and functions of money;
- Concept of Demand of money (Classical, Cambridge & Keynesian);
- Concept of Supply of money (Classical, Monetarists’ & RBI)
12.00
Unit II:
Quantity Theory of Money
- Cash transactions approach;
- Cash Balance approach;
- Keynesian approach;
9.00
Unit III:
Inflation & Deflation
- Inflation - definition, types, causes, effects and measures to control;
- Trade-off between inflation and unemployment;
- Deflation;
- Inflation versus Deflation.
10.00
Unit IV:
Commercial Banks
- Commercial Banks - functions;
- The process of credit creation;
- Liabilities and assets of banks;
- Development of commercial banking in India after independence.
8.00
Unit V:
Central Bank
- Central Bank -Functions;
- Instruments of credit control – quantitative & qualitative;
- RBI-organization and promotional role.
Essential Readings:
- Gupta, S.B. (1983), Monetary Economics, S. Chand & Co., New Delhi.
- Seth, M.L., Monetary Economics, Laxmi Narain Agrawal, Agra.
References:
- Sundaram, K.P.M., Money, Banking, & International Trade, Sultan Chand & Company, New Delhi.
- Rangarajan, C. (1999), Indian Economics: Essays on Money and Finance, UBS Publisher, New Delhi.
- Mitra, S. (1970), Money and Banking, Random House, New York.
- Mithani, D.M.,Money, Banking, International Trade & Public Finance, Himalaya Publishers.
- RBI (1983), Functions and Working of RBI, Bombay.
- RBI (2000), Report on Trend and Progress of Banking in India (Annual), Mumbai.
- Reddy, Y.V. (2000), A Review of Monetary and Financial Sector Reforms in India-A Central Banker’s Perspective, UBSPD, New Delhi.
Academic Session:
