M.A. ECONOMICS (SEMESTER-WISE) - Dr BR Ambedkar University

DR. BHIM RAO AMBEDKAR UNIVERSITY, AGRA .M.A. ECONOMICSSEMESTER WISE - DETAILED SYLLABUSTHIRD SEMESTEROPTIONAL PAPER – 304 (C)FINANCIAL INSTITUTIONS AND MARKETSUNIT 1: Nature and Role of Financial SystemMoney and finance — Money and near-money — Financial intermediation and financialIntermediaries — The structure of the financial system — Functions of the financial sector — Indicatorsof financial development — Equilibrium in Financial Markets — Financial System and EconomicDevelopment — Criteria to evaluate assets: Risk and financial assets, types of risk, return on assets,Risk — Return trade off — Valuation of Securities.UNIT 2: Structure of Interest RatesTheories of interest rate determination — Level of interest rates — Long period and Short periodrates — Term Structure of Interest rates — Spread between lending and deposit rates — Administeredinterest rates — Appropriate interest rate policy.UNIT 3: The Central Bank, Commercial Banks and Monetary PolicyFunctions of Central Bank — The aims and objectives of the monetary policy in developed anddeveloping countries — Instruments of monetary policy — Proliferation of banking and non-bankfinancial intermediaries — Effectiveness of monetary policy — Credit creation and its control;Profitability and efficiency of banks; Development banks — role and functions; Investment banking andmerchant banking; Financial sector reforms in India.Page 55