|BS (BBA) – II|
|Course Title : MONEY AND BANKING
Course Number : BA (BS) – 312
Credit Hours: 03
The course aims at providing basic understanding about the principles and practices in money and banking field. The course reviews definitions, functions and theories of money – classical, Keynsian and modern viewpoints, central and commercial banking, examination of monetary policy. The course also discusses the principles of international finance and financial institutions.
- Evaluation, Function and Forms of Money
1.1. Need for Money. Origin of Money. Commodity Money and Commodity Standards, Rise of Fiat Money. Seigniorage1.2. Functions of Money. Types of Money – (M1, M2, M3 and L)1.3. Approaches to Defining and Measuring Money
- Techniques of Money Management and Role of Central Bank
2.1. Definition of Money Policy2.2. Monetary Policy Operation Procedures2.3. Rules versus Discretion in Monetary Policy2.4. Role of State Bank of Pakistan as the Coordinator of Monetary Policy of the Country
- Introduction to International Monetary System
3.1. International Accounting Identities: Balance of Payment. The Current Account. The Capital Account. Settlement of Balances3.2. Fixed Exchange Rate System: Gold Standard. Brettan Woods System3.3. Floating Exchange Rate System
- Monetary and Fiscal Policy Coordination
4.1. Basic International Policy Relationship4.2. Regulation of Banking and Financial Markets4.3. Basle Agreements I and II
- Financial Markets, Financial Institutions and Instruments
5.1. Capital Markets: Debt and Equity Markets5.2. Money Markets: Financial Service Markets5.3. Financial Institution: Depository Institution, Commercial Bank, Savings and Loans Associations, Mutual Saving’s Bank and Credit Unions5.4. Non-Depository Institutions: Mutual Funds, Insurance Companies and Pension Funds etc.
- Financial Instruments
6.1. Certificate of Deposits6.2. Treasury Bills6.3. Purchase Agreements6.4. Banker’s Acceptances6.5. Federal Funds6.6. Corporate Stocks6.7. Corporate Bonds6.8. Mortgages6.9. Government Securities6.10. Consumer and Commercial Loans6.11. Municipal Bonds
7.1. Origin7.2. Evolution7.3. Types and Functions7.4. Sources of Funds in Relation to Legal, Economic and Social Factors Involved in Pakistan
- Prudential Regulations for Banks, DFIs etc.
- Funds Management
9.1. Investment and Lending9.2. Statutory and Liquidity Requirements in Pakistan
- Banker Customer Relationship
10.1. Primary and Others
- Customer’s Accounts
11.1. Individual11.2. Institutional and Corporate11.3. Requirement of KYC
- Negotiable and Other Instruments
12.1. Promissory Notes12.2. Bill of Exchange12.3. Cheque12.4. Drafts12.5. Receipt
12.6. Bonds12.7. Coupons12.8. Dividend Warrants12.9. Letter of Credit12.10. Travellers Cheques12.11. Credit and Debit Cards
- Payment of Cheques and Other Instruments by Banks
- Collection of Instruments by Banks
14.1. Crossing and Endorsements14.2. Principles of Bank Lending14.3. Control of Credit in Pakistan14.4. Security of Bank Advances
- Interest Free Banking
15.1. Relation and Methods
Luckett D. G., Money and Banking, McGraw Hill, New York, (3rd Edition), 1998.
Miller Roger LeRoy and VanHoose’ David D., Modern Money and Banking, McGraw Hill Book Co., Singapore, (3rd Edition), 2000.
- Siddiqi Asrar H., Practice and Law of Banking in Pakistan, Royal Book Company, Karachi, (7th Edition), 2004.