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:

 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

IV. 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.

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 V. COURSE CONTENTS:

 Functions and Forms of Money

 Monetary Policy and the Role of State Bank
 Prudential Regulations of SBP
 New Banking Instruments

VI. EVALUATION CRITERIA:

Quizzes: 5%
Assignments: 10%
Project: 10%
Mid Term Examination: 25%
Final Term Examination: 50%
Total: 100%

VII. TEXTBOOKS:

Mishkin, Frederic S (M), The Economics of Money, Banking and Financial Markets, Global
Edition, Pearson. [You can use either the 9th Edition (2010) or the 10th Edition (2012).]

VIII. 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

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 DETAILED COURSE OUTLINE

Week Topics
1 An Overview of the Financial System M, Ch 2
Functions of the financial markets
Structure of the financial markets
Financial market instruments

2 Direct and indirect finance M, Ch 2

Functions of financial intermediaries
3 Role and Functions of Money M, Ch 3
The three functions of money
Evolution of the payment system

4 Measuring money M, Ch 3
5 Understanding interest rates Ch 6
 What are Interest Rate
 How interest rate are determined
 Risk and Term Structure of Interest
Rates
6&7 Understanding the Banking Industry: Ch 8
Economic Analysis of the financial structure

Midterm Examination
9 Banking Industry – Structure Ch 10
10 Banking Regulation Ch 11
11 MONEY SUPPLY Ch 9

12 The bank’s balance sheet Multiple Deposit Ch 13

Creation
13 Determinants of the Money Supply Ch 14
14 MONETARY POLICY The Federal Reserve Ch 12
System
15 Tools of Monetary Policy Ch 15
16 International Financial System Ch 18

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