National College of Business Administration & Economics

Course Outline
Class: MBA Course Code: Instructor Name: sheraz an um Class %iming: Contact &mail: Recommended Text Book:
Recommended Books: 1- The Economics of Money , Banking and Financial Markets ( 5th Edition !y Frederic "# Mishkin

Semester: 04 Course Name: Money Session: !all "0#$ Consultation %ime: None Contact %el No: 0$00'"(")*+ & Banking

Reference Books:
$- Modern Money and Banking ( %rd Edition !y Roger &eRoy Miller, 'a(id '# )an*oose %- Money, the Financial "ystem, and the Economy ( $nd Edition !y R# +lenn *,!!ard

-o,rse .re-re/,isites:
0 so,nd ,nderstanding of Micro 1 Macroeconomics of +rad,ate &e(el

-o,rse 2!3ecti(e:
This co,rse 4ro(ides a frame5ork for st,dying the role of money in the economy and the instit,tional characteristic of the !anking system and financial markets# Basic economic 4rinci4les s,ch as s,44ly and demand , the conce4ts of e/,ili!ri,m, the theory of asset demand, and 4rofit maximi6ation are a44lied to st,dy the economic analysis of !anking and financial instit,tions#

-o,rse 2,tcomes:
0fter st,dying this co,rse, the st,dents 5ill !e a!le to ,nderstand the ca,ses of changes in 4rice le(el and their connection 5ith the money s,44ly along 5ith 4olicy frame5ork to tackle s,ch sit,ations# Moreo(er, st,dy of !anking and financial sector 5ill f,rther !roaden their a44roach and (ision on the 5orking of the financial instit,tion and their e(er increasing role in the gro5th of an economy#

National College of Business Administration & Economics

Marks ,istri-ution
Attendance Assignments Midterm Examination Final Examination

Weight age 10% 10% 30% 50%

.ecture /ise ,istri-ution

&ect,re 1 Introduction of Money and Its Basic Functions -ore 7 0lternati(e conce4ts of Money 'ifferent F,nctions of Money 'isc,ssion on different 4ayment systems 8m4ortance of Money in an economy An Overview of The Financial Syste 0n 8ntrod,ction of Basic -once4ts of Banking and Financial 8nstit,tions F,nction of Financial Markets "tr,ct,re of Financial Markets Financial Markets 8nstr,ments 8nternationali6ation of Financial Markets

&ect,re $

&ect,re %

&ect,re 9

!nderstandin" Financial Inter ediation -once4ts of Financial 8ntermediation The Benefits of Financial 8ntermediation 8ntermediation and 'isintermediation Ty4es of Financial 8ntermediation !nderstandin" The Interest #ates :hat are 8nterest Rates; The Real 8nterest Rate

&ect,re 5

National College of Business Administration & Economics

&ect,re = The 'istinction Bet5een Real and <ominal 8nterest Rates &oana!le F,nds Theory of 8nterest .rice Ex4ectation and 8nterest Rates

Theory of $ortfolio %hoice -once4t of .ortfolio -hoice 'eterminants of .ortfolio -hoice &hat Financial Institution 'o ?nderstanding of "ec,rities Market 8nstit,tion 8n(estment 8nstit,tions 'e4ository 8nstit,tions +o(ernment Financial 8nstit,tions The Business of Ban(in" 0n o(er(ie5 of Banking 8nd,stry The "o,rce of Bank F,nds Bank &oans Bank 8n(estment and -ash 0ssets &oan .ricing .ricing Bank 'e4osits

&ect,re >

&ect,re @

&ect,re A

&ect,re 1B

&ect,re 11

The Mana"e ent of Ban( O)eration Basic 24eration of a Bank +eneral .rinci4les of Bank management #e"ulation of 'e)ository Institutions :ho Reg,late Banks :hy the Banking 8nd,stry is Reg,lated +o(t# 8nter(ention in the Banking 8nd,stry The .attern of Reg,lation

&ect,re 1$

&ect,re 1%

&ect,re 19 &ect,re 15

Structure of %entral Ban( And its Functions F,nction, Tools and Role as -ontroller of Money market Monetary .olicy, -once4ts, 2!3ecti(es, Ty4es 8nstr,ments of Monetary .olicy

National College of Business Administration & Economics

&ect,re 1= &ect,re 1> Effects of monetary 4olicy on "4ending &ong r,n effects of Monetary 4olicy

Inflation * %auses* and %onse+uences The Forei"n ,-chan"e Mar(ets and ,-chan"e #ate Exchange Rates and Trade <ominal (ers,s Real Exchange Rates 'etermining "hort R,n7 &ong R,n Exchange Rates .ro3ect .resentation Final exams

&ect,re 1@ &ect,re 1A

National College of Business Administration & Economics