Money and Financial Markets (Hardback)

  • Title : Money and Financial Markets (Hardback)
  • Author : Niti Bhasin
  • ISBN 13 : 9788177085051
  • Year : 2020
  • MRP : Rs 1780
  • Selling Price : Rs 1353
  • Discount : 24%
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Money is the pivot around which an economy revolves. A modern economy, characterized by acute specialisation and exchange, is unthinkable without money, financial intermediaries, financial markets and financial instruments. In recent years, there has been a gradual switchover from the use of paper-based payment mediums to those based on electronics. E-money is one such new product which has appeared on Indian horizon recently. Crypto currency is another instrument which is a type of digital token that relies on cryptography for chaining together digital signatures of token transfers, peer-to-peer networking and decentralization. Similarly, complex financial products, such as derivatives, have proliferated in the financial markets. These products have become highly popular with banks and financial institutions as they allow them to hedge their risks and manage their regulatory and economic capital more efficiently. This book provides a comprehensive description of the theory and functioning of modern monetary and financial systems with reference to India. It is spread over 33 chapters which have been organized into 5 theme parts. Part I (chapters 1 to 2) is titled An Introduction to Money. Apart from explaining the meaning, kinds and functions of money (including e-money, digital money, virtual currency and crypto currency), it also discusses the theories of money supply determination. Part II (chapters 3 to 17) is titled Financial Institutions, Markets, Instruments and Innovations. It deals with discussion on financial system, financial institutions, financial markets and their integration, asymmetric information, adverse selection, moral hazard, financial crisis, money market in India, capital market in India, modernization of stock exchanges, depository system, and financial derivatives. Part III (chapters 18 to 21) is titled Interest Rates. It covers determination of interest rates, causes of interest rate differentials, theories of term structure of interest rates, and interest rates in India. Part IV (chapters 22 to 26) is titled Banking System. It focuses on functions of a commercial bank, balance sheet and portfolio management of a bank, structure and changing role of banks in India, banking sector reforms in India since 1991, and digital technology in the banking sector. Part V (chapters 27 to 33) is titled Central Banking and Monetary Policy. It delves into functions of central bank, balance sheet of central bank, instruments of monetary control, monetary management in an open economy, Reserve Bank of India, monetary policy of India, and inflation targeting in India. CONTENTS Part I: An Introduction to Money 1. Meaning, Kinds and Functions of Money 1.1 Meaning of Money 1.2 Metallic Money, Paper Money and Fiduciary Money 1.3 Electronic Money (E-Money) 1.4 Digital Money (or Digital Currency) 1.5 Virtual Currency 1.6 Crypto Currency 1.7 Functions of Money 2. Theories of Money Supply Determination 2.1 What is Money Supply? 2.2 Why is Money Supply Important? 2.3 Relationship between Money and Prices: The Equation of Exchange 2.4 Four Measures of Money Supply 2.5 Determinants of Money Supply 2.6 Fiscal Deficits and Monetary Expansion 2.7 Money Supply in Open Economy 2.8 Measures of Money Supply in India Part II: Financial Institutions, Markets, Instruments and Innovations 3. Financial System and Financial Institutions 3.1 Meaning, Importance and Functions of Financial System 3.2 Role of Government in Financial Development 3.3 Determinants of Access to Financial Services 3.4 Regulation and Supervision of Financial System 3.5 Financial Neutrality versus Financial Activism 3.6 Financial Volatility versus Financial Stability 3.7 Financial Globalisation 4. Classification, Regulation and Supervision of Financial Institutions in India 4.1 Classification of Financial Institutions in India 4.2 Regulation and Supervision of Financial Institutions in India 5. Financial Institutions in India at a Glance 5.1 Commercial Banks 5.2 Regional Rural Banks (RRBs) 5.3 Urban Co-operative Banks (UCBs) 5.4 Rural Co-operative Credit Institutions 5.5 Development Finance Institutions (DFIs) 5.6 Non-banking Financial Companies (NBFCs) 5.7 Mutual Funds 5.8 Pension Funds 5.9 Insurance Organisations 6. Role of Financial Markets 6.1 Importance of Financial Markets 6.2 Types of Financial Markets 6.3 Regulation and Supervision of Financial Markets in India 6.4 Financial Markets and Monetary Policy of the RBI 6.5 Reforms in the Financial Markets 7. Integration of Financial Markets 7.1 Integration of Financial Markets: Conceptual Framework 7.2 Need for Integration of Domestic Financial Markets 7.3 Measures Taken for Integration of Financial Markets in India 7.4 Segment-wise Integration 7.5 Regional Financial Integration (Asia) 7.6 International Financial Integration 8. Asymmetric Information, Adverse Selection and Moral Hazard 8.1 Asymmetric Information 8.2 Adverse Selection 8.3 Moral Hazard 9. Financial Crisis 9.1 Types of Financial Crisis 9.2 Asian Financial Crisis, 1997 9.3 Financial (Sub-prime) Crisis, 2007-08 10. Money Market 10.1 Meaning and Functions of Money Market 10.2 Reserve Bank of India (RBI) and the Money Market 10.3 Evolution of Money Market in India 10.4 Developments in the Money Market since 1991 10.5 Component-wise Analysis of Money Market in India 10.6 Report of the Technical Group on Money Market 10.7 Areas of Concern 11. Capital Market Evolution and Reforms in India 11.1 Meaning and Importance of Capital Market 11.2 Capital Market in the Pre-reforms (i.e. Pre-1991) Period 11.3 Capital Market Reforms since 1991 11.4 Introduction of Free Pricing 11.5 Strengthening of Disclosure Norms 11.6 Transparency and Efficiency 11.7 Shortening of Settlement Cycle 11.8 Growth of Service Providers 11.9 Protection of Investors 11.10 Issues and Concerns 12. Legal Framework for Capital Market in India 12.1 Securities and Exchange Board of India (SEBI) Act, 1992 12.2 Securities Contracts (Regulation) Act (SCRA), 1956 12.3 Depositories Act, 1996 and Depositories and Participants Regulations, 2018 12.4 Companies Act, 2013: Main Provisions 12.5 Limited Liability Partnership (LLP) Act, 2008 12.6 Insolvency and Bankruptcy Code (IBC), 2016 13. Modernisation of Stock Exchanges 13.1 Stock Market 13.2 Trading Infrastructure in Stock Exchanges 13.3 Bombay Stock Exchange (BSE) Ltd. 13.4 National Stock Exchange (NSE) of India Ltd. 13.5 Demutualisation and Corporatisation of Stock Exchanges 14. Depository System, Dematerialization (Demat) and Rematerialization (Remat) 14.1 Depository System 14.2 Depositories Act, 1996 and Depositories and Participants Regulations, 2018 14.3 Dematerialization (Demat) 14.4 Rematerialization (Remat) 14.5 National Securities Depository Ltd. (NSDL) 14.6 National Securities Clearing Corporation Ltd. (NSCCL) 15. Emergence and Popularity of Financial Derivatives 15.1 Emergence of Complex Financial Products 15.2 Meaning of Derivatives 15.3 Reasons for the Popularity of Derivatives 15.4 Variants (or Types) of Derivative Contracts 15.5 Participants in the Derivatives Market 15.6 Economic Role of Derivatives 15.7 History of Derivatives 15.8 International Experience of Derivatives 16. Forwards, Futures and Options 16.1 Forwards/Forward Contracts 16.2 Futures/Future Contracts 16.3 Options 16.4 Currency Futures 16.5 Forward Markets Commission (FMC) 17. Derivative Instruments in India 17.1 L.C. Gupta Committee on Derivatives Trading in India 17.2 Amendment of Securities Contract Regulation Act (SCRA) 17.3 Measures to Protect the Rights of Investors in the Derivatives Market 17.4 Recent Developments in the Derivatives Market 17.5 Credit Derivatives 17.6 Credit Derivatives in India 17.7 Traders and Trading System of Derivatives Part III: Interest Rates 18. Determination of Interest Rates 18.1 Significance of Interest Rate 18.2 Types of Rate of Interest 18.3 Loanable Fund Theory of the Rate of Interest 18.4 Liquidity Preference Theory of the Rate of Interest 19. Causes of Interest Rate Differentials 19.1 How Are Interest Rates Determined? 19.2 What is an Interest Rate Differential? 19.3 Causes of Differences in Interest Rates 19.4 Types of Credit: Based on Repayment and Interest Options 20. Theories of Term Structure of Interest Rates 20.1 What is Term Structure of Interest Rates? 20.2 Shapes and Uses of Yield Curve 20.3 Three Theories to Explain Yield Curve 21. Interest Rates in India 21.1 Interest Rate Policy: Pre-reforms Period (Before 1991) 21.2 Interest Rate Policy: Post-reforms Period (i.e. since 1991) 21.3 Current Interest Rate Policy of RBI 21.4 Competitive Financial Saving Rates Part IV: Banking System 22. Meaning, Importance and Functions of a Commercial Bank 22.1 Meaning and Importance of Commercial Banks 22.2 Functions of a Commercial Bank 22.3 Deposits and Loans 23. Balance Sheet and Portfolio Management of a Bank 23.1 Balance Sheet of a Bank 23.2 Portfolio Management 24. Structure and Changing Role of Banks in India 24.1 Post-Independence History and Developments 24.2 Classification of Commercial Banks in India 24.3 Legal Framework for Banking Sector in India 24.4 Ownership and Governance of Commercial Banks in India 24.5 Deposit Insurance System 25. Banking Sector Reforms in India Since 1991 25.1 Backdrop of Banking Sector Reforms 25.2 Objectives of Banking Sector Reforms 25.3 Contents of Banking Sector Reforms 25.4 Challenges for the Banking Sector 26. Digital Technology in Banking Sector 26.1 Digitization in Banking Sector 26.2 Benefits of Digital Payments 26.3 Card-based Electronic Payment Systems 26.4 Non-card Electronic Payment Systems 26.5 Cyber Security Concerns Part V: Central Banking and Monetary Policy 27. History, Objectives and Functions of Central Bank 27.1 History of Central Banks 27.2 Changing Objectives of Central Banks 27.3 Functions of a Central Bank 28. Balance Sheet of Central Bank 28.1 Significance of the Balance Sheet of Central Bank 28.2 Frequency and Format of Balance Sheet 28.3 Components of the Balance Sheet 28.4 Balance Sheet of the Reserve Bank of India (RBI) 29. Instruments of Monetary Control 29.1 Enhanced Need for Monetary Control 29.2 Bank Rate Policy 29.3 Cash Reserve Ratio (CRR) 29.4 Open Market Operations 29.5 Moral Suasions 29.6 Macro Prudential Policy 29.7 Additional Tools of Monetary Management in India 30. Monetary Management in an Open Economy 30.1 Closed versus Open Economy 30.2 Monetary Transmission Mechanism in the Open Economy 30.3 Recent Challenges in Monetary Management 30.4 India’s Monetary Management in the Globalized World 31. Reserve Bank of India 31.1 Establishment and Early History of RBI 31.2 Pre-Independence Activities of RBI 31.3 Functions of Reserve Bank of India (RBI) 31.4 Changing Role of RBI in the Financial Sector 31.5 RBI’s Vision Documents for Payments 32. Monetary Policy of India 32.1 Meaning of Monetary Policy 32.2 Objectives of Monetary Policy 32.3 Monetary Policy Framework 32.4 Monetary Policy Process 32.5 Monetary Transmission Mechanism 32.6 Operating Procedures of Monetary Policy 32.7 Constituents of Monetary Reforms 32.8 Instruments of Monetary Policy 32.9 Monetary Policy Assessment 33. Inflation Targeting in India 33.1 What is Inflation (Price Rise)? 33.2 Measurement and Reporting of Inflation 33.3 Price Stability as an Objective of Monetary Policy in India 33.4 What is Inflation Targeting? 33.5 Origin of Inflation Targeting 33.6 Need for Inflation Targeting 33.7 Fixing of Inflation Target 33.8 Monetary Policy Committee (MPC) Bibliography Index