Introduction to Money Banking and Financial Markets
2 credits · 21 chapters · 85 flashcards
Pre mid-sem
- Saving, investment and the financial systemNot startedWhere saving comes from, how a financial system moves it to the people who invest it, and the four identities that tie the whole thing together. · 45 min · 22 steps · Session 1Quiz: 6 questions, 70% to pass
- How a financial system is put togetherNot startedThe four subsystems, deepening versus broadening, market-based versus bank-based design, and every list the exam asks you to reproduce. · 55 min · 27 steps · Session 1Quiz: 6 questions, 70% to pass
- What determines interest ratesNot startedLoanable funds, the four demand shifters and three supply shifters, and the Fisher effect in both its linear and its exact form. · 55 min · 22 steps · Session 2Quiz: 6 questions, 70% to pass
- The money market and its instrumentsNot startedT-bill pricing and yield in every form the course uses, call, notice and term money, commercial paper, certificates of deposit, and repo against reverse repo. · 1 h 10 min · 25 steps · Sessions 3-4Quiz: 6 questions, 70% to pass
- Mortgages, securitisation and the credit crisisNot startedThe Indian mortgage market and its policy scaffolding, how securitisation turns illiquid loans into tradeable paper, and the chain that broke in 2008. · 1 h · 24 steps · Session 4Quiz: 6 questions, 70% to pass
- Bonds and the Indian bond marketNot startedWhat a bond actually is, the terminology the exam expects verbatim, the eight classification factors, and the international taxonomy from Prof. Panda's note. · 1 h · 25 steps · Session 5Quiz: 6 questions, 70% to pass
- Pricing a bond and finding its yieldNot startedPresent value, holding period return, current yield, the YTM approximation, pull to par, clean versus dirty price, and the six risks. · 1 h 25 min · 29 steps · Session 6Quiz: 8 questions, 70% to pass
- Equity markets, private and publicNot startedPrivate equity and venture capital, going public, hybrid financing and preference shares, the three phases of an Indian IPO, and rights-issue arithmetic. · 1 h 10 min · 27 steps · Session 7Quiz: 7 questions, 70% to pass
- The secondary market, indices and efficiencyNot startedWhy a secondary market matters, how price-weighted, value-weighted and equal-weighted indices differ, and Fama's three forms of market efficiency. · 1 h · 23 steps · Session 8Quiz: 6 questions, 70% to pass
Post mid-sem
- What a derivative is, and whyNot startedCash market against derivative market, the underlying assets, hedgers, speculators and arbitrageurs, lot size and contract value, and the Indian boom. · 55 min · 22 steps · Session 9Quiz: 6 questions, 70% to pass
- Forwards, futures and marginNot startedThe two oldest derivatives, the payoff arithmetic for the long and the short, who can default and by how much, and how a margin account keeps the whole thing standing up. · 1 h · 29 steps · Sessions 9-10Quiz: 6 questions, 70% to pass
- OptionsNot startedA right instead of an obligation: calls and puts, buyer and writer, moneyness, intrinsic and time value, and the payoff arithmetic from both sides of the contract. · 1 h 5 min · 27 steps · Session 10Quiz: 6 questions, 70% to pass
- The foreign exchange marketNot startedReading a currency quote, direct against indirect, bid, offer and spread, spot against forward, and the interest-parity arithmetic that ties the two together. · 1 h 5 min · 28 steps · Session 11Quiz: 6 questions, 70% to pass
- What sets the exchange rateNot startedThe law of one price, purchasing power parity and its limits, and the four long-run factors, each with the professor's own India-versus-USA arithmetic. · 55 min · 24 steps · Session 12Quiz: 6 questions, 70% to pass
- The RBI and monetary policyNot startedHow the Reserve Bank is built, the six things it does, and the tool box it uses to move the price and quantity of money, with the arithmetic of CRR, SLR and the LAF corridor. · 1 h · 29 steps · Session 13Quiz: 6 questions, 70% to pass
- The structure of Indian bankingNot startedScheduled and non-scheduled, public and private, rural and cooperative: the whole Indian banking map, and the six things every bank does, including the one that creates money. · 1 h · 31 steps · Session 14Quiz: 6 questions, 70% to pass
- Sources and uses of bank fundsNot startedBoth sides of a bank's balance sheet: owned funds, deposits, borrowings and the CASA ratio on one side, loans, SLR and non-SLR investments and reserve balances on the other. · 55 min · 26 steps · Sessions 14-15Quiz: 6 questions, 70% to pass
- Valuing a bank and scoring itNot startedThe discounted cash flow valuation of a commercial bank with a terminal value, then the whole ratio set read off a real balance sheet: profitability, liquidity and capital adequacy. · 1 h 15 min · 30 steps · Sessions 15-16Quiz: 6 questions, 70% to pass
- Risk, NPAs and BaselNot startedThe four risks a bank runs, the ladder a loan falls down when it stops paying, the provision each rung demands, and the three Basel accords that decide how much capital stands behind all of it. · 1 h 15 min · 37 steps · Sessions 16-17Quiz: 6 questions, 70% to pass
- Mutual fundsNot startedPooled money under professional management: the NAV, the fund types, what the costs really take, and the SEBI structure of an Indian mutual fund from sponsor to custodian. · 1 h 10 min · 37 steps · Sessions 17-18Quiz: 6 questions, 70% to pass
- Fund performance, insurance and pensionsNot startedSharpe, Treynor and Jensen's alpha, why they can rank the same funds differently, and the last two institutions on the outline: insurance companies and the National Pension System. · 1 h 5 min · 28 steps · Sessions 18-20Quiz: 6 questions, 70% to pass
Assessment
| Component | Weight | Note |
|---|---|---|
| Mid-Sem Exam | 30% | Sessions 1-8: the financial system, interest rates, money markets, mortgages and securitisation, bond markets and valuation, equity markets and market efficiency. |
| End-Sem Exam | 30% | PLO 2a. Sessions 9-20: derivatives, forwards, futures and options, foreign exchange, the RBI and monetary policy, banking institutions and ratios, risk and NPAs, mutual funds and fund performance. |
| Group Assignment | 10% | Announced in the 11th session, due in the 18th. The one assignment actually posted on Classroom was a one-page write-up of MPC functioning, as a Word document. |
| Class Participation | 10% | |
| Quiz | 20% | Quiz 1 was a 15-mark objective Google Form, taken by both sections on or just before 25 August 2026, announced two days ahead. Section A's range was 6 to 15 with a mean of 11.57. |
What the exam looks like
Two formats, prepared differently. The quiz is objective: the marks sheets for both sections show integer scores out of 15 collected through a Google Form, so roughly fifteen one-mark questions in one sitting, announced two days ahead. Speed and recall of definitions and formulas decide it.
The mid-sem and end-sem are pen and paper, 30 marks each. Every slide deck ends its theory with one or two "Exercise" slides, which is the professor telling you what the numerical part looks like. Expect definitions and "difference between" questions (money market versus capital market, primary versus secondary, repo versus reverse repo, forwards versus futures, direct versus indirect quotation, Basel I versus II versus III, mutual fund versus hedge fund), short notes on institutions, and numericals: T-bill price and yield, bond price and YTM, real versus nominal interest, forward profit and margin, exchange-rate appreciation, bank ratios, NAV, and Sharpe, Treynor and Jensen.
Show every line of working, give units and the currency, and state which convention you used where two exist: the exact Fisher form against the approximation, 365 days against 360, simple discounting against compounding.
What the professor expects
Verbatim from the outline: "Students should pre-and post-read the topics covered in the class. They should be ready for any surprise evaluation." And: "Students are expected to maintain high standards of Honesty and integrity."
The most useful instruction in either section's export is Prof. Panda's announcement of 6 August 2026: the outline's third column is the authoritative reading map, and the expectation is pre-reading, session by session. Sessions 1 and 2 map to textbook chapters 1 and 2, and the debt-market session to chapter 6.
One graded submission was posted: a one-page write-up of MPC functioning, as a Word document, due the same evening. Monetary policy is therefore examinable even though no Section A slide deck covers it.
Books
- Financial Markets and Institutions 13e - Jeff Madura, Cengage (prescribed; the Drive copy is the 11th edition and is a scan with no text layer)
- The Indian Financial System 5e - Bharti Pathak, Pearson (reference)
- Financial Markets and Institutions 10e - Frederic S. Mishkin, Stanley G. Eakins, Tulsi Jayakumar, Hemant Manuj, Pearson (reference; the readable one)