Money and Banking

Money and Banking is a captivating academic subject that unveils the complicated world of money, exploring its dynamic role as a medium of exchange, store of value, and unit of account. Dive into the fascinating realms of monetary policy, central banking, and the landscape of financial markets. Discover the heartbeat of economies as we unravel the pivotal functions of banks and their impact on our financial world.

Topics in Money and Banking

Concept of Money

1. Significance of Money
2. Evils of Money
3. Quantity Theory of Money: Transactions Approach (Fisher’s Version)
4. What is a Cheque? – Types, Features, Chequebook, Advantages
5. How to Write A Check – Steps to Fill Out a Check
6. How to Write a Check With Cents: 6 Steps (with Pictures)
7. How to Void a Check?
8. What is Cashier’s Check? How to Get a Cashier’s Check?

Commercial Banking

1. Bill Market in India
2. Difference between Commercial and Cooperative Banks
3. Difference between Public Sector and Private Sector Banks
4. Local Area Banks | Full Form of LAB, Features, Objectives and Functions
5. SLR | Full Form, Objectives, Components and Examples
6. SLA | Full Form, Components and Types
7. Export-Import Bank of India | Full form of EXIM Bank, Schemes and Working
8. IDBI | Full Form, Functions, Subsidiaries and Services
9. Indian Money Market: Concept, Structure, Characteristics and Defects
10. FIPB : Full Form, Roles, Functions and Need
11. Immediate Payment Service | Full Form of IMPS, Features, Procedure and Charges

Nature and Scope of Public Finance

1. Public Finance: Meaning, Definition, Scope, and Functions
2. Public Finance | Importance and Principles
3. Difference between Public Finance and Private Finance

Taxation

1. Canons of Taxation
2. Characteristics of a Good Tax System
3. Taxable Capacity: Concept and Factors influencing Taxable Capacity
4. Incidence and Shifting of Tax : Effect, Importance and Theories
5. Theories of Tax Incidence
6. Modern Theory of Tax Incidence
7. Economic Effects of Taxation

Public Expenditure

1. Canons of Public Expenditure

Public Debt

1. Public Debt | Meaning and Causes
2. Difference between Private Debt and Public Debt
3. Classification of Public Debt
4. Types of Public Debt
5. Internal Debt | Types, Effects, Significance and Limitations
6. External Debt | Types, Effects, Merits and Demerits
7. Difference between External Debt and Internal Debt
8. Economic Effects of Public Debt
9. Incidence of Public Debt
10. Methods of Redemption of Public Debt

Budget and Financial Administration

1. Budgetary Procedure | Concept and Steps

Benefits of Studying Money and Banking

• Studying Money and Banking enhances the understanding of financial concepts.
• Studying Money and Banking helps in gaining insights into the macroeconomic landscape.
• Studying Money and Banking helps in acquire valuable skills and knowledge in various financial roles, including banking, investment management, financial analysis, and policymaking.
• Studying Money and Banking develops the ability to make informed financial decisions by understanding how monetary policies, interest rates, and various other banking practices.
• Studying Money and Banking helps in assessing and managing financial risks.
• Studying Money and Banking helps in understanding global financial markets.

Scope of Money and Banking

The scope of studying money and banking is vast, offering a comprehensive understanding of financial systems and their impact on economies. Here are key aspects of its scope,

1. Financial Markets: Explore the dynamics of stock markets, bond markets, and other financial instruments, understanding how they function and influence the allocation of resources.

2. Central Banking: Dig into the role of central banks, studying monetary policy tools, interest rate mechanisms, and their impact on inflation, employment, and overall economic stability.

3. Commercial Banking: Understanding the operations of commercial banks, including deposit creation, lending practices, and risk management, is essential for comprehending the functioning of the banking sector.

4. International Finance: Examine the complexities of global finance, including foreign exchange markets, international trade finance, and the role of international financial institutions.

5. Financial Regulation: Learn about regulatory frameworks that govern financial institutions, ensuring stability and safeguarding the interests of depositors and investors.

6. Financial Instruments: Explore various financial instruments such as derivatives, options, and futures, understanding their uses and implications for risk management and speculation.

7. Monetary Policy: Analyse the tools and strategies employed by central banks to regulate money supply and interest rates and achieve macroeconomic objectives.

8. Technology and Finance: Investigate the impact of technological advancements on financial services, including online banking, digital currencies, and other innovations.

9. Behavioural Finance: Study the psychological aspects of financial decision-making, gaining insights into how human behaviour influences economic choices and market trends.

10. Research Opportunities: Contribute to ongoing research in the field, exploring emerging trends, economic phenomena, and policy implications, thereby staying the first mover of financial knowledge.

Components of Money and Banking

The subject of Money & Banking comprises several key components, each offering a unique perspective on financial systems and institutions,

1. Introduction to Money: Definition and functions of money, historical evolution of money, types of money, etc.

2. Financial Markets: Types of Markets like stock markets, bond markets, and commodity markets, the role of financial markets in capital allocation, understanding market structures and trading mechanisms, etc.

3. Banking Systems: Types of banks ( like commercial banks, central banks, etc.) and other financial intermediaries, functions of commercial banks, central banking operations, monetary policy, etc.

4. Monetary Policy: Tools used by central banks to regulate the money supply, interest rate mechanisms and their impact on the economy, Goals of monetary policy, etc.

5. International Finance: Foreign exchange markets and currency exchange rates, international trade and finance, role of international financial institutions, etc.

6. Financial Regulation: Regulatory frameworks governing financial institutions, prudential regulation and oversight, implications of regulatory changes on financial stability, etc.

7. Financial Instruments: Types of financial instruments, characteristics and uses of different financial instruments, risk and return associated with various instruments, etc.

8. Technology in Finance: Digital banking and online financial services, innovations and their impact on traditional banking, blockchain technology, and cryptocurrencies.

9. Financial Crises: Causes and consequences of financial crises, case studies of historical financial crises, measures taken to prevent and mitigate crises, etc.

10. Research and Analysis: Conducting research on financial topics, analysing economic indicators and financial data, critical evaluation of economic theories and models, etc.

Frequently Asked Questions (FAQs) About Money and Banking

1. What is the role of commercial banks in the economy?

Commercial banks play a crucial role in the economy by facilitating financial transactions, providing loans to individuals and businesses, and serving as a safe place for depositors to store their money.

2. What are the key functions of a central bank, and how do they impact monetary policy?

Central banks control a country’s money supply, regulate interest rates, and implement monetary policies to achieve economic stability. They influence inflation and employment rates by adjusting interest rates and conducting open market operations.

3. How do interest rates influence borrowing and spending in an economy?

Lower interest rates encourage borrowing and spending by making loans more affordable. Conversely, higher interest rates can deter borrowing and spending as the cost of loans increases.

4. What factors contribute to inflation, and how does it affect the value of money?

Inflation can result from factors like increased demand, production costs, or monetary policy. It erodes the purchasing power of money, meaning that the same amount of money buys fewer goods and services over time.

5. Describe the differences between traditional banking and online banking services.

Traditional banking involves physical branches and in-person transactions, while online banking provides electronic access to financial services. Online banking often offers convenience, lower fees, and 24/7 access to account information.