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MonetaryEc MonetaryEconomicsMajor

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CLUSTER UNIVERSITY SRINAGAR Eco

Department of Economics

uGHTENS
UG- 3rd Semester (NEP)

NOWLEDGE ENLIC Subject: - Economics

Course Titlc: Monetary Economics Course Type: (Major)

Course Code: UGECO22.J301 Total Credits: 06;( Theory: 04; Tutorial/Practical = 02)

Objectives: The objective of this course "Monetary Economics" is to provide students with a comprehensive
understanding of concepts and measures of money supply. The course enables the students to understand the
structure and working of Indian Financial System andconduct of monetary policy by the RBI.
Learning Outcomes:
LO1: Demonstrate a clear understanding of the fundamental concepts of money, its evolution, and the
functions.
L02: Analyse and evaluate how to measure Money supply.
LO3: Analyse the structure role and working of Indian banking system and Monetary Policy.
L04: Understanding the role and working of Indian Financial System.
Unit I. Basic Concepts
Money and its Functions, Kinds of Money, Approaches to Definition of Money: Conventional,
Chicago, Gurley and Shaw, and Central Bank Approaches. Evolution of Monetary Standards
from Gold Standard to Paper Standard, Gresham's Law, Principles of Note Issue: Currency and
Banking Principle.
Unit II. Money Supply
Money Supply and its measures, Concept of ligh-Powered Money, Determinants of High
Powered Money,Concept of Money Multiplier, Credit Multiplier and Deposit Multiplier.

Unit III. Indian Financial System-I


Overview of Indian Financial System; Banking and Non-Banking Financial Institutions;
Commercial Banks: RRB's and Development Banks: Central Banking: RBI and its functions:
Monetary policy: Objectives and Instruments; Monetary policy comnnittee: Composition and
functions; Inflation Targeting.
Unit I . Indian Financial System-II
Financial Markets: Money & Capital Market; Money market instruments-Treasury bills,
Commercial bills, Certificate of Deposit, Call money; Stock Exchange Markets (NSE & BSE):
Capital market instruments- Shares, Bonds and Debentures; SEBIand its Role.
Tutorials
Assignment/Group Discussions/ Presentation/Quiz/Book Revicw/Ficld Survey (Followcd by Viva
Voce)
Unit V. Working of Digital Money and Cryptocurrency
Assets and liabilitiesof commercial banks.
Working of Cooperatives and Microfinance institutions (SHG's)
Unit VI.
Eco- (02)
Credit Creation by Commercial Banks - Using Hypothetical Data
Performance indicators ofmaior Indian stocks
Survey on financial literacy and payment mechanisms

Suggested Readings:
1. Gupta, S. B. (2010). Monetary Economics: Institutions, Theory & Policy. S Chand & Company (1
December 2010).
2. Sethi,T.T (2005). Money, Banking and lnternational Trade. SChand Publication.
3. Khan, M. Y. (2015). Indian Financial System. McGraw Hill Publication.
4. Bhalla, V. K. (2020). Money, Banking, and Financial Markets in India. S. Chand Publishing.
5. Mishkin, F. S.(2018). Money, Banking, and Financial Markets. Pearson Education.
6. Pathak, B. V. (2019). Indian Financial System. Pearson Education.
7. Bhole, L.M. (2017)Financial Institutions and Markets. Mc Graw Hill.

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