Chapter 2

पाठ्यक्रम परिचय

This section introduces the course and highlights the fundamental importance of money in the economic world. According to Geoffrey Crowther (1951), money is considered the most basic invention among all human inventions, comparable to the wheel in mechanics, fire in science, and vote in politics. Money forms the foundation of the entire economic aspect of human social existence. Initially invented as a medium of exchange, money gradually became a means of storing value. It plays a crucial role not only in exchange but also in consumption, production, distribution, and revenue. The section emphasizes that money is the axis around which the entire economy revolves, making its study essential for a comprehensive understanding of economics. The course will cover money, banking, and public finance, providing detailed knowledge about the utility of money in these areas. There are 17 units in the curriculum, with the first four dedicated to money, including its definition, functions, demand and supply, and value. The course also explains various quantity theories of money, such as Fisher, Cambridge, and Friedman equations. The relationship between money supply and price level is explored, along with the roles of commercial and central banks in influencing money supply. Units 5 to 8 focus on commercial and central banks and their credit control methods.

• Money is the most fundamental invention in economics.
• Money was initially created as a medium of exchange and later became a store of value.
• Money is central to all branches of economics: consumption, production, distribution, and revenue.
• The curriculum covers money, banking, and public finance in detail.
• First four units focus on money: definition, functions, demand and supply, and value.
• Quantity theories of money (Fisher, Cambridge, Friedman) are explained.
• The influence of commercial and central banks on money supply is discussed.
• 📌 Money: The most basic invention in economics, serving as a medium of exchange and store of value.
• 📌 Medium of Exchange: The primary function of money, facilitating transactions.
• 📌 Store of Value: Money's ability to retain purchasing power over time.

इकाई संख्या एवं पाठ्यक्रम संरचना

This section provides an overview of the course structure and the division of units. The course consists of 17 units, each focusing on a specific aspect of money, banking, and public finance. The first four units are dedicated to money, covering its meaning, functions, importance, demand and supply concepts, and value. Subsequent units address topics such as inflation and deflation, quantity theories of money, commercial banking, central banking, credit control methods, monetary policy, international trade, exchange rate determination, public finance, taxation, and public expenditure. Each unit is listed with its title and page numbers, ensuring students know what to expect and can navigate the course material efficiently.

• The course is divided into 17 units covering money, banking, and public finance.
• Units 1-4 focus on money: meaning, functions, demand and supply, and value.
• Units 5-8 cover commercial and central banking, credit control, and monetary policy.
• Units 9-11 discuss international trade and exchange rate determination.
• Units 12-17 deal with public finance, taxation, and public expenditure.
• 📌 Unit: A division of the course focusing on a specific topic.
• 📌 Money Supply: The total amount of money available in the economy.
• 📌 Credit Control: Methods used by central banks to regulate money supply.