Unit-2 Financial institutions | Money & Banking | GE Sem-3, B.com (H), BA, BSc, Delhi University

Concept of Financial institutions, markets, instruments and financial Innovation | Unit-2 Financial institutions, markets, instruments and financial Innovation | Money & Banking | GE Sem-3,B.com (H), BA, BSc, Delhi University Course Description This course exposes students to the theory and functioning of the monetary and financial sectors of the economy. It highlights the organization, structure and role of financial markets and institutions. It also discusses interest rates, monetary management and instruments of monetary control. Financial and banking sector reforms and monetary policy with special reference to India are also covered. 1. Money (Chapters 1,2) Concept, functions, measurement: theories of money supply determination. 2. Financial Institutions, Markets, Instruments and Financial (Chapters 3, 4, 5, 6, 7) Innovations a. Role of financial markets and institutions: problem of asymmetric information-adverse selection and moral hazard; financial crises. b. Money and capital markets: organization, structure and reforms in India: role of financial derivatives and other innovations. 3. Interest Rates (Chapter 8) Determination; sources of interest rate differentials: theories of term structure of interest rates; interest rates in India. (Chapter 9) 4. Banking System a. Balance sheet and portfolio management. b. Indian banking system: Changing role and structure: banking sector reforms. 5. Central Banking and Monetary Policy (Chapters 10, 11) Functions, balance sheet; goals, targets, indicators and instruments of monetary control, monetary management in an open economy; current monetary policy of India. Preface 1. Money: Concepts and Functions. 1.1 Limitations of Barter System 1.2 Meaning of Money 1.3 Functions of Money 1.4 Origin and Development of Money 1.5 Classification of Money 1.6 Properties of Money 1.7 Conclusion 2. Supply of Money 2.1 Components of Money Supply 2.2 Concepts of Money Supply 2.3 Money Supply Process 2.5 Money Supply Curve 2.6 Measures of Money Supply 2.7 Compilation of Monetary Aggregates 3. Financial Institutions and Markets 3.1 Introduction Financial System and its Functioning Organisation of Financial System 4. Information Asymmetry in Financial System 4.1 Introduction 4.2 Transaction Cost 4.3 Asymmetric Information 4.4 Adverse Selection: Problem of Lemons 4.5 Moral Hazard Problem 4.6 Financial Crisis 5. Money and Capital Markets 5.1 Introduction 5.2 Difference between Money Market and Capital Market 5.3 Money Market 5.4 Capital Market 6. Financial Sector Reforms 6.1 6.2 6.3 6.4 Introduction Performance of Financial Sector Need for Financial Reforms Major Reforms After 1991 6.5 Conclusion 7. Financial Innovation 7.1 Introduction 7.2 7.3 Financial Futures Options Contract 7.4 Swaps 8. Theory of Interest Rate 8.1 Yield Curve 8.2 Introduction 8.3 Expectations Hypothesis Segmented Market Hypothesis Preferred Habitat Hypothesis 8.5 8.4 8.6 Solved Problems 9. Issues with Banking System in India and Basel Norms 9.1 Banking Sector: An Outlook 9.2 Issues with Banking System 9.3 Basel Norms and India 10. Monetary Policy: Operations and Analysis 10.1 Introduction 10.2 Targets and Instruments 10.3 Intermediate Targets 10.4 Operating Procedures 10.5 Problems in Monetary Policy making 10.6 Conclusion 11. Reserve Bank of India and its Working 11.1 Introduction 11.2 Functions and Roles of Reserve Bank of India 11.3 Working of Reserve Bank of India" 11.4 Conclusion University Question Paper Money and banking,Money, banking,Delhi University Money and banking, Money and banking Delhi University, money and banking 3rd semester Du Sol,du Sol money and banking, classesofficial, Unit 1 money and banking,money and banking unit 1,