We have great pleasure in presenting the new revised edition of our book 'Business Economics' for students of Third Year B.Com., Fifth Semester, University of Mumbai. The discussion in the book is divided into three modules. The coverage, organisation and contents of these modules are as follows:
Module 1 on 'Commercial Banking' discusses assets and liabilities of commercial banks, trade off between liquidity and profitability, Narasimham Committee Reports on Financial and Banking Sector Reforms, banking developments in India during the pre-nationalisation phase and post-nationalisation phase, deposit mobilisation and bank lending trends, banking sector reforms, group-wise performance of the banking sector, and new technology in banking in India.
Module 2 on 'Central Banking' discusses the general central banking and developmental functions of Reserve Bank of India, monetary policy of the Reserve Bank of India, control of currency and credit by the Reserve Bank of India, short-term liquidity management by the Reserve Bank of India, and issues pertaining to microfinance and self-help groups.
Module 3 on 'Financial Markets' discusses the Indian money market and the Indian capital market in detail. The chapter on Indian money market discusses the unorganised and organised sectors of the Indian money market, features of the Indian money market, and money market reforms in India. The chapter on Indian capital market highlights the role of capital market in industrial growth, capital market reforms undertaken to strengthen the capital market in India, role of SEBI, mutual funds, and forward, future and commodity markets.
It has been our endeavour to ensure that the coverage of all topics listed in the syllabus is comprehensive and exhaustive. The style adopted is direct and presentation simple so that the students do not have any problems in understanding the arguments. Important definitions and statements have been highlighted in bold letters for the convenience of students. Each chapter is followed by a summary of main points contained in the chapter. At the end of each chapter, a list of questions divided into objective questions, core questions and explanatory notes has been given for the practice of students.
Module 1 : Commercial Banking
1. Commercial Banking
2. Narasimham Committee Reports on Financial and Banking Sector Reforms
3. Commercial Banking in India
Module 2 : Central Banking
4. The Reserve Bank of India
Module 3 : Financial Markets
5. Indian Money Market
6. Capital Market in India