Money supply

Money supply

Bachelor of Business Studies (BBS) — Second Year

Subject: Macroeconomics for Business (MGT 209)

Unit 7: Monetary Theory

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of money supply.
• Explain the economic model or issue, identify its assumptions and interpret the relevant diagrams, calculations or dated evidence.

Curriculum Scope

• Concepts and determinants

Detailed Microsyllabus

1. Money-supply foundations

   1. Meaning and specified monetary aggregates.
   2. Currency and deposit components.
   3. Distinguish money stocks from monetary flows.

2. Determinants

   1. Banking behavior, public currency preferences and central-bank conditions.
   2. Expansion and contraction mechanisms.
   3. Use the aggregate definition stated in the exercise.

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Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 24-26.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here. Nepalese current-status discussions should identify the reporting period and use dated official publications, such as Nepal Rastra Bank reports, rather than undated figures.