SPRING SEMESTER 2016

BBA/6

COURSE TITLE
MONEY AND BANKING

C O U R S E L E V E L : UNDER GRA D U AT E
C O N TA C T HOURS: 48
CREDIT HOURS: 3

SADIAJABBEN
Sather17@gmail.com
M A N A G E M E N T S C I E N C E D E PA R T M E N T

QUAID-I-AZAM UNIVERSITY
ISLAMABAD
Course Description:

This course will discuss the importance of money and banking to economic activity on the
national and international level. The student will learn the concept of money and about the
financial institutions that help in understanding the circulation of money through the system. The
course also covers deposit expansion, the evolution of commercial banking, deposit creation, a
brief history of the banking system. The course also includes the relationship between money and
banking and Macroeconomic theory and concludes with the importance of money and banking in
international trade and finance.
Course Objectives:
Upon successful completion of the course, students will be able to:
1. To understand the structure and evolution of the banking system
2. To understand the operation of the central bank Banking system and how it regulates the
money supply
3. To read and understand financial texts and journals.
4. To use the knowledge learned to make intelligent decisions on financial investments.

5. Have an understanding of how technology has changed the money and banking industry

Teaching Methodology:
This course will employ the following methods of teaching and learning:
• Lecture/discussion
• Case Studies

Recommended Textbook:

Ball, Laurence; Money, Banking and Financial Markets, Worth Publishers, 2009

Students are encouraged to use any other relevant text and read newspapers, management
relevant magazines and publications to ensure a practical understanding of the concepts.

Reference Books:
 The Economics of Money, Banking and Financial Markets (9th Edition)
by Frederic S. Mishkin (Author)

 Black, Tyrone and Donnie Daniel. Money and Banking. 2nd ed.
Plains, Texas: Business Publications Inc., 1985.
Attendance:

Minimum 80% attendance at lecture is required. It is the responsibility of the student to follow
up on what they may have missed by missing a class from a teaching session through interaction
with fellow students who attended the class.

Assignments and Late Submission:

Assignments are to be typed and neatly formatted (12 font size, Calibri or Times New Roman
font, 1.25 inch margins). In keeping with standards of professionalism appropriate to
management studies, it is expected that deadlines will be honored. In fairness to course members
who complete on time, work submitted after the due date will incur a penalty for lateness. The
penalty is 10% of the maximum marks per day late. In the event of unusual or unforeseeable
circumstances (e.g. serious illness, family bereavement), you must discuss waiver of the penalty
with the instructor at the earliest opportunity and before the submission deadline.

Dishonest Practice and Plagiarism:

Plagiarism is a form of dishonest practice. Plagiarism is defined as copying or paraphrasing another’s

work, whether intentionally or through failure to take proper care, and presenting it as one’s own. In
practice, this means plagiarism includes any attempt in any piece of submitted work to present as one’s
own work, the work of another (whether of another student or published authority). Any student found
responsible for plagiarism shall be subject to penalties, including deduction of marks for the piece of
work submitted or a zero grade for the course.

Assessment Criteria:

Students will be assessed on the following criteria: -------

ITEM ASSESSMENT TASK LEGNTH WEIGHT TOTAL MARKS

1 Final Examination 02 Hours 50% 50

2 Mid-Term Examination 1Hour 30 mins 25% 25
3 Quizzes + Assignments 10% 15
4 Class Participation 05% 05
5 Group Project 10% 15

Grade Distribution:
GRADE: SCORES OBTAINED:
A ≥ 80 %
A- 76 – 79 %
B+ 72 – 75 %
B 68– 71 %
C+ 64 – 67 %
C 60 – 63 %
D+ 55 – 59 %
D 50 – 54 %
F ≤ 50 %
Week Course Contents Hours
1 3
The Significance and Function of Money
 Understanding the meanings and functions of money
 The significance of money
 Money in circulation in Pakistan
2 3
The Financial Institutions
 An introduction to financial markets
 The commercial banks
 The savings industry
 Investment banking
 Central Bank
3 The Evolution of Commercial Banking 3

 The Goldsmiths' Principle

 Starting a bank
 Functions of bank capital
 Reasons for bank failures

4 Credit money creation by commercial banks 3

 Credit expansion by a bank
 . The reserves of a bank
 Credit expansion by the banking system
 The commercial bank as a business
 The operation of check clearing and collection

5 State Bank Of Pakistan 3

 State bank and credit control
 Role of central bank in the economic development

6 Money and Macroeconomic Theory 3

 The foundations of Macroeconomics

 The elements of the Keynesian Model
 The Keynesian Income Model

7  Interest rate Theories 3

 Monetarism vs. Keynesianism
8  Revision 
9 MID-TERM EXAM

10 Monetary and Fiscal Policies 3

  Monetary and fiscal policies in theory
 Monetary theory in practice
11 The Role of Money in International Trade and Finance 3
 The economic basis of international trade
 The foreign exchange market
 The Balance of Payments system
12  The International Monetary Fund 3
 The World Bank
 The relationship between international trade and
domestic economic activity
13 Exchange Rate 3
 Determination
 Types of exchange rate
14  Appreciation and depreciation of currency 3
 Devaluation and its impact on balance of payment
15  Final presentations 3
16 Discussion and revision for the Final exams
FINAL EXAM