B.A. LL.B. (Five Years) Economics Minor-II-2: Money, Banking and International Trade Syllabus - KSLU 2026

• Minor-II-2: Money, Banking and International Trade

Objectives:

• 1. To provide the students with theoretical knowledge about Money, Banking and International Trade.
• 2. To enable the students to understand the behaviour of Money , Banking and Trade related activities such as Value of Money, Money Market, Central Banking, Balance of Payment, Foreign Exchange etc.,

Unit 1 : Value of Money

• i) Meaning and Definition of Money and its functions
• ii) Supply of Money -M1, M2, M3, M4,
• iii) Value of Money-Meaning
• iv) Index Number : Simple and Weighted, Construction of index number, Problems and Uses
• v) Quantity Theory of Money:
• a) Cash-Transactions Approach b)Cash-Balance Approach
• vi) Inflation and Deflation -Types, Causes and effects.

Unit 2: Money Market

• i) Money market- meaning, features and components
• ii) Functions of a Commercial Bank
• iii) Balance Sheet of a Commercial Bank
• iv) LiquidityVs Profitability
• v) Credit Creation

Unit 3: Central Banking

• i) Functions of a central Bank
• ii) Methods of Credit Control
• iii) Quantitative Methods b) Qualitative methods
• iv) Objectives of Monetary Policy

Unit 4 International trade

• i) Importance of International Trade
• ii) Theories of International Trade
• iii) Comparative Cost Theory b)Modern Theory
• ix) Terms of Trade
• x) Trade Barriers -Tariffs and Quotas\

Unit 5 Balance of Payments and Foreign Exchange

• i) Balance of Trade and Balance of Payments
• ii) Disequilibrium in B.O.P. -Causes and Methods of Correction
• iii) Determination of Foreign Exchange Rate, Demand for and Supply of Foreign Exchange, Markets Objectives and Methods of exchange Control, Fixed and Flexible Exchange Rates.
• iv) Brief history of GATT, Achievements of GATT, WTO objectives, functions and Agreements TRIPS, TRIMS, WTO & India.
• v) Foreign Direct Investment: Concepts FDI, Nature, Role and operation of MNCS.

References:

• 15. Soderstein .B. (1993) International Economics, Macmillan, London.
• 16. Kindleberger C.P. (1976) International Economics R.D. Irwin Homewood.
• 17. M.C. Vaish and SudamaSingh(1980) International Economics, Oxford and IBH.Publication, New Delhi.
• 18. Sundram, K.P.M. Money Banking and International Trade, Sultan Chand and SonsEducational Publishers, New Delhi Thirty Ninth Edition 2004, Reprint, 2005.
• 19. Vaish, M.C., Money Banking and International Trade, New Age International Private Limited Publishers, New Delhi, Eighth Updated Edition, 1997
• 20. R.R .Paul - Monetary Economics.
• 21. Kulkarni and Kalkundrikar - Monetary Economics.
• 22. M.L.Seth -Monetary Economics.
• 23. D.M. Mithani -Money, Banking and International Trade.
• 24. M.L.Jingan -Money, Banking and International Trade.
• 25. Decock -Money, Banking and International Trade.
• 26. Sayers R.S. -Commercial Banking
• 27. Jingan -International Economics
• 28. K.R. Gupta -International Economics