Minor-I Paper-III (Economics): Money, Banking and Public Finance

Unit 1 — Concept of Money:

1.1 Meaning, Characteristics and Functions of Money. · 1.2 Significance of Money and Classification of Money; · 1.3 Circular Flow of Money-Meaning.

Unit 2 — Banking System:

2.1 Central Bank- meaning and Functions of Central Bank · 2.2 Commercial Banks- meaning and Functions Commercial banks · 2.3 Mechanism of Credit Creation by Commercial Bank · 2.4 Credit Control Measures of the Central Bank · 2.5 Role of Banks in the Development of a Country;

• Structure of Indian Banking system
• Types of Common Banking Institutions
• Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR)

Unit 3 — Public Finance:

3.1 Nature and Scope of Public Finance-Role of Public Finance in Developing Countries; · 3.2 Taxation- Classification of Taxes-Direct tax and Indirect Tax-Progressive- Regressive and Proportional Taxation · 3.3 Main Features of Indian Tax System · 3.4 Difference between Tax and Non-tax Revenue

• Indian Tax Structure — Direct and Indirect Taxes
• Sources of Public Revenue
• Nature and Scope of Tax

Unit 4 — Public Expenditure

4.1 Meaning, Objectives and Types of Public Expenditure · 4.2 Causes of Growth of Public Expenditure · 4.3 Effects of Public Expenditure · 4.4 Public Goods, Private Goods and Merit Goods.

• Public Expenditure — Classification and Causes of growth of Public Expenditure

Unit 5 — Public Debt and Public Budget:

5.1 Meaning and Sources of Public Debt- · 5.2 Objectives of Public Debt- · 5.3 Classification of Public Debt and Effects of Public Debt; · 5.4 Meaning of Budget-Balanced and Unbalanced Budget · 5.5 Recent Union Budget of India- · 5.6 Deficit Financing-Advantages and Risks of Deficit Financing.