This course is designed to expose undergraduate students to understand what money is and the theories of money supply and money demand. To know the roles of the central bank and understand how monetary policy works.

A standard definition of money is anything generally accepted for payment of a debt. A debt is an obligation incurred when a business transaction takes place. Money is a medium of exchange sought for the purpose of transacting exchange of commodities /services / goods. A commodity chosen as money can not be used for other purposes rather ensuring that business transaction takes place. This then implies that a commodity taken as money must be universally accepted by the users if it has to retain its value.