Chapter 3

पाठ्यक्रम परिचय

The introduction to the syllabus emphasizes the fundamental importance of money in the economic world. Geoffrey Crowther, in his 1951 book 'Outline of Money', published by World Press Limited, Kolkata, stated that among all human inventions, money is the most basic. Just as the wheel is to engineering, fire to science, and vote to politics, money holds a central place in economics. The entire economic aspect of human social existence is based on money. Money was invented as a medium of exchange, but gradually it also became a means of storing value. It is as important in other branches such as consumption, production, distribution, and revenue as it is in exchange. Therefore, it is said that money is the axis around which the entire economy revolves. Without the study of money, our knowledge remains incomplete. For a student of economics, understanding money and its entire functioning is essential. This course will provide knowledge not only about money but also about banking and public finance, and discuss the utility of money in these fields. The syllabus consists of 17 units, with the first four units related to money. After describing the definition and functions of money, the concepts of demand and supply of money and the value of money are discussed. Various equations of the quantity theory of money, such as Fisher, Cambridge, and Friedman, are also explained. The relationship between money supply and price level is examined, and the activities of commercial banks and central banks, which most influence the supply of money, are introduced. Units 5 to 8 cover the contribution and functions of commercial banks, the nature and functions of the central bank, methods of credit control, and the monetary policy of the Reserve Bank of India.

• Money is considered the most fundamental invention in economics.
• Geoffrey Crowther compared the importance of money to the wheel in engineering and fire in science.
• Money was first invented as a medium of exchange and later became a store of value.
• Money is crucial in all branches of economics: consumption, production, distribution, and revenue.
• The syllabus includes 17 units, with the first four focusing on money.
• Key topics include the definition, functions, demand, supply, and value of money, as well as quantity theory equations.
• The role of commercial and central banks in influencing money supply is introduced.
• 📌 Money: The most fundamental economic invention, serving as a medium of exchange and a store of value.
• 📌 Medium of Exchange: The primary function of money, facilitating transactions.
• 📌 Store of Value: Money's ability to preserve value over time.

इकाई संख्या एवं नाम (Table of Contents)

This section provides the table of contents for the course 'Money, Banking & Public Finance'. It lists the 17 units covered in the syllabus, with their respective page numbers and main topics. The units begin with the meaning, functions, and importance of money, followed by concepts of demand and supply of money, value of money, inflation and deflation, and various theories of money. Subsequent units cover commercial banking, central banking, credit control methods, monetary policy, international trade, exchange rate determination, public finance, taxation, public expenditure, and public debt, including India's internal and external public debt and fiscal federalism.

• The syllabus consists of 17 units.
• Units 1-4 focus on money: its meaning, functions, demand, supply, value, and theories.
• Units 5-8 cover commercial and central banking, credit control, and monetary policy.
• Units 9-11 discuss international trade, comparative cost theory, and exchange rate determination.
• Units 12-17 cover public finance, taxation, public expenditure, public debt, and fiscal federalism.
• 📌 Commercial Bank: A financial institution that accepts deposits, offers checking account services, and makes loans.
• 📌 Central Bank: The principal monetary authority of a country, which regulates the money supply and credit.
• 📌 Credit Control: Methods used by central banks to regulate the supply of money and credit.