Supply of Money : 1.1 Meaning & functions of money, 1.2 Measures of money supply, 1.3 The liquidity measures in India & explanation of their components L-1, L-2 & L-3, 1.4 Money supply & role of commercial Banks : a) Process of credit creation & credit Multiplier, b) Limitation of credit creation, 1.5 Money supply & Central Bank, a) Role of Central Bank, b) Objectives of credit control, c) Tools of credit control & liquidity management
Demand for Money : 2.1 Determinant’s of demand for money, 2.2 Motives of demand for money, 2.3 Theories of demand for money : a) Fisher’s Quantity Theory of money, b) Keynes Liquidity Preference Theory
Macro Economics Problems : 3.1 Inflation – a) Meaning, b) Demand pull inflation, c) Cost push inflation, d) Inertial inflation & expectation, 3.2 Effects of inflation: Positive & Negative, 3.3 Trade-off between inflation & unemployment (Philips curve Analysis short run and long run), 3.4 Business cycle: meaning, features & various phases
Macro-Economic Policies : 4.1 Meaning & Objectives of macro-economic policies, 4.2 Supply side economics : a) The Central Theme, b) Tax cuts aggregate supply, 4.3 The Laffer curve, 4.4 Critical evaluation
International Trade : 5.1 Difference between Internal & International trade, 5.2 Concept of Balance of Payment & Balance of Trade, 5.3 Structure of Balance of Payment, 5.4 Meaning of disequilibrium of Balance of Payment, 5.5 Causes of disequilibrium of Balance of Payment, 5.6 Measures to correct adverse Balance of Payment, 5.7 Argument for & against free trade & Protectionism
Foreign Exchange Rate : 6.1 Meaning of exchange rate, a) Merits & demerits of fixed & flexible exchange rate, 6.2 Factors affecting foreign exchange rate.