Money and Banking

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

1. To define the concepts of demand and supply of money.

2. 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.

9.00
Unit I: 
Money
  • Definition, Types and functions of money; 
  • Barter economy, monetary standards , evolution of money
  • 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- -Institutions,Theory& Policy. S. Chand & Co. 2013. 2. Seth, M.L., Monetary Economics, LaxmiNarainAgrawal, 2020.

References: 

1. Sundaram, K.P.M., Money, Banking, & International Trade. Sultan Chand & Company, 2010.

2. Rangarajan, C. Indian Economics: Essays on Money and Finance, UBS Publishers, 1999.

3. Mithani, D.M., Money, Banking, International Trade & Public Finance. Himalayan Publishers, 2012.

Academic Session: 
2022-23
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