Money and Banking

Paper Code: 
ECO 201
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

Course Objectives:

The objectives of this course are-

1. To develop an understanding of the concepts of demand and supply of money.

2. To enable the students to comprehend the causes and measures of controlling inflation and deflation.

3. To acquaint the students with the functions and working of commercial banks and central bank.

Course Outcomes (COs):

Course

 Outcome (at course level)

Learning and teaching strategies

Assessment Strategies 

Paper Code

Paper Title

ECO 201

Money and Banking

CO 9: Understand the basic concepts related to functions and classification of money.

CO 10: Identify the functions and working of central and commercial banks

CO 11:  Analyze the development process of commercial banking and role of RBI

Approach in teaching: Interactive Lectures, Discussion, Case studies.

 

Learning activities for the students:

Presentations, Assignments and Group discussions.

Class activity, Assignments and Semester end examinations.

 

9.00
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)

 

9.00
Unit II: 
Quantity Theory of Money
  • Cash transactions approach;
  • Cash Balance approach;
  •  Keynesian approach.

 

9.00
Unit III: 
Inflation and Deflation
  • Inflation - definition, types, causes, effects and measures to control;
  • Trade-off between inflation and unemployment;
  • Deflation;
  • Inflation versus Deflation.

 

9.00
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.

 

9.00
Unit V: 
Central Bank
  • Central Bank -Functions;
  • Instruments of credit control – quantitative & qualitative;
  • RBI-organization and promotional role.

 

Essential Readings: 
  1. Gupta, S.B., Monetary Economics, S. Chand & Co., New Delhi.
  1. Seth, M.L., Monetary Economics, Laxmi Narain Agrawal, Agra.

 

References: 
  1. Sundaram, K.P.M., Money, Banking, & International Trade, Sultan Chand & Company, New Delhi.
  1. Rangarajan, C. , Indian Economics: Essays on Money and Finance, UBS Publisher, New Delhi.
  1. Mitra, S., Money and Banking, Random House, New York.
  1. Mithani, D.M., Money, Banking, International Trade & Public Finance, Himalaya Publishers.
  1. RBI, Functions and Working of RBI, Bombay, Latest Edition.

 

Academic Session: 
2020-21
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