UNIVERSITY OF GUJRAT

FACULTY OF MANAGEMENT AND ADMINISTRATIVE SCIENCES

I.

COURSE INFORMATION:

Course Name: Money and Banking

Course Code: MGT-304
Total Credit Hours: 3
Prerequisite: Introduction to Business Management (MGT-101)
II.

COURSE DESCRIPTION:

The course is designed to equip students with knowledge of a financial system and its regulatory
framework and environments in Pakistan, and as it exists in a developed economy. This course is
vital for business students because it help them in understanding the basics of banking and
financial markets. The course comprises of didactic lectures, case studies, quizzes, assignments
and a final term project.
III.

COURSE OBJECTIVES:

At the end of this course students will be able to:

IV.

Understand the basics of Banking sector

Understand what is Money and its functions
Differentiate between different types of financial institutions and their working
Differentiate between conventional and Islamic banking
Evaluate different banking instruments
COURSE COMPETENCIES:

At the end of this course, students will have developed the following competencies.
Ability to define the Money, Banking and basic concepts.
Ability to differentiate between Monetary and Fiscal Policy.
Ability to explain the role of State Bank of Pakistan in regulating the banking sector of
Pakistan.
Ability to work in Banks that issues new financial instruments.

V.

COURSE CONTENTS:

VI.

Functions and Forms of Money

Monetary Policy and the Role of State Bank

Prudential Regulations of SBP

New Banking Instruments
EVALUATION CRITERIA:

Quizzes:
Assignments:
Project:
Mid Term Examination:
Final Term Examination:
Total:
VII.

5%
10%
10%
25%
50%
100%

TEXTBOOKS:

VIII.

Roger LeRoy Miller and David D. Van Hoose: Modern Money and Banking, McGraw
Hill
R. Glenn Hubbard: Money, the Finncial System and the Economy, Addison Wesley
REFERENCE BOOKS

Robert.D.Auerbach: Money, Banking and Financial Markets, Maxwell Macmillan

Dudley G. Luckett: Money and Banking, McGraw Hill
Baye and Jansen: Money, Banking and Financial Markets an Economic Approach,
AITBS
Bennett T. McCallum, Monetary Economics
Asrar and Siddique: Practice and Law of Banking in Pakistan, Royal Book Company

DETAILED COURSE OUTLINE

Week
1

Topics
Functions and Forms of Money
Why to study Money?
The Roles of Money
Types of Monetary and Nonmonetary Economies
What backs Fait Money?

7
8
9

10

11

12

Money: Present and Future

Why it is important to define and Measure Money
Two approaches to defining and measuring Money
How the Fed Measures Money
What is the Best definition of Money?
Financial Instruments and Markets
Financial Intermediation
Channeling Savings to Borrowings
Financial Instruments
Financial Intuitions
Financial Markets
Interest Rates
What are Interest Rate
How interest rate are determined
Depository Financial Institutions
The Origins of Banking and depository Institutions
The Commercial banking Industry
The Thrift Industry
The Blurring distinction between depository Intuitions
Depository Institutions and the Money Supply Process
The relationship between Reserves and Total deposits in Depository
Institutions
The Feds Direct Effect on the Total Reserves in the Banking System
Deposits Expansion by the Banking System
Complete Money and Credit Multipliers
Recap of the Syllabus before the Mid Term
Mid Term Examination
The Business of Banking
How banks earn Profit
Bank Liabilities
Bank Assets
Bank Net Worth
Bank Failure
Determining Banks Profits
Banks Functionality and Credit Lending
Cheques and their Payments
Crossed Cheques and their Collection
Control of Banks Credit in Pakistan
Banks Functionality and Credit Lending(Cont.)
Principles and Forms of Lending
Securities for Advances
Interest Free (Islamic) Banking in Pakistan

13
14
15
16
17
18

Innovations in Products and Services in Banking

Prudential Regulations for Banks by State Bank of Pakistan
Presentations
Presentations
Preparation Week
Final Examination