Course Contents

• Introduction to Money: Evolution of Money, the Concepts of Money, Functions, Importance and Role of Money, Why Study Money? Money And National Income And Product; Money and Prices, The Distinction between Money and Credit, Money as an Asset, Concept of near money, Economic disadvantages of Money, Principles and methods of Note Issue, barter system. • Classical theory for Money and Modern Quantity Theory. • Money Market and Capital Market • Foreign Exchange • Introduction to Banking: Origin and evolution of commercial Banking, Concept and its Functions, Types of Banks. Bank Accounts: Current, saving, PLS, Term Deposit, Foreign Currency Accounts. • Central Bank: Origin, Objectives, and Functions of central Bank. • Credit Creation: Process, Limitations, of Credit Creation and the factors in Credit analysis. • Letter of Credits: Kinds, Advantages, Procedures, Discrepancies, and Important Terms of Letter Of Credit, Problems faced by Pakistani Exporters. • Principles of Lending, Forms of Lending, Cash Finance, Overdraft Loans, Bridge and Participation Loans. Purchase and Discounting of Bills. • Securities for Advances; Classification of Securities; Banker’s Lien, Charge, Pledge, Hypothecation, Guarantees, Indemnity. • Theories of Islamic Finance • E- Banking: Introduction, Perspectives and products of E- Banking, Issues and Future of E- Banking. • Prudential Regulations

Course Synopsis

Overview of basic concepts of money and its value, credit and financial institutions, use of currency and its implications in an advanced society, role of money in the market with special attention to current developments in the banking industry, negotiable Instruments, Credit Creation, Letter of Credit and E-Banking.

Course Learning Outcomes

By the end of this course students will be able to: • Understand the role of money, banks and other forms of financial inter-mediation • Recognize the affects that commercial banking institutions on the community, the economy, and the individual. • Differentiate between various banking products and services (i.e. loans, investments). Identify the function of the Central Bank in the Country. • The students will learn about differentiation of modern tools used in E- Banking.