FMT409                            MONETARY ECONOMICS 
      
      
      
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                  NATIONAL OPEN UNIVERSITY OF NIGERIA 
                      
                      
                      
                      
                      
                      
                  SCHOOL OF SCIENCES AND TECHNOLOGY 
                          
                          
                          
                          
                          
                      COURSE CODE: FMT 409 
                     
                     
                     
                     
                     
                  COURSE TITLE: MONETARY  ECONOMICS 
                   
                   
                   
                   
                   
                   
                             
                             
      
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               FMT409                                                                                         MONETARY ECONOMICS 
                                                                               
                
                
                                                            COURSE GUIDE 
               COURSE DEVELOPERS:    Prof. Sam Ale 
                                                             Dr. Ajibola .s.o 
                
               COURSE WRITERS:        Dr. Dauda I,.   Okponobi Y. A,  
                                                        &  Adegbola, Eunice Abimbola  
                                                                                 
                COURSE  EDITORS:   Dr. Mrs. Erigbe Ajiriaogehene.  P. 
                                                              
               PROGRAMME LEADERS: Profs. Sam Ale,  Osisiogwu & Dr.Ajibola 
               COURSE COORDINATOR:  Dr. Ajibola.S.O 
                                                                               
                
                
                
                
                
                
                
                
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     FMT409                            MONETARY ECONOMICS 
      
      
      
     COURSE TABLE OF CONTENTS 
     Introduction  
     What You Will Learn in this Course  
     Course Aims 
     Course Objective  
     Working through this Course 
     Course Materials 
     Study Units 
     Set Textbooks 
     Assignment File 
     Presentation Schedule  
     Assessment  
     Tutor-Marked Assignment 
     Final Examination and Grading  
     Course Marking Scheme  
     Course Overview  
     How to Get the Most from this Course 
     Reading Section 
     Tutors and Tutorials  
     Summary  
      
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          FMT409                                                        MONETARY ECONOMICS 
          INTRODUCTION  
          This course guide tells you the nature of the course the materials you are going to use and 
          how you are expected to use them for meaningful benefits. It is expected that at least two 
          hours  should  be  devoted  to  the  study  of  every  unit.  For  each  course  units  there  are 
          exercises. You are encouraged to do them. They serve as points of reflections, which are 
          necessary for proper understanding of the facts. 
          At the end of each unit, there are tutor-marked assignments, which you are expected to 
          answer.  They  serve  as  revision  and  continuous  assessment.  Tutorial  lectures  will  be 
          provided. This is the opportunity you have for a face-to-face contact with your facilitator. 
          Any area you did not understand will be explained during the tutorial classes.  
           
          COURSE AIMS    
          The course aims at exposing you (students) to the necessary information that will add to the 
          student’s knowledge on Monetary Economics. The aim of the course shall be achieved by:  
           
               Introducing you to the concept of Monetary Economics. 
               Examining the meaning, scope and nature of Monetary Economics. 
               Dilating copiously the roles of Monetary Economics .. .. 
               Assessing Monetary Economics architecture and design. 
                 
          COURSE OBJECTIVES  
           
          Upon successful completion of this course, you should be able to: Discuss succinctly the 
          concept of Monetary Economics.  
           
          UNIT 1   MONEY           
                                               
            Definitions of Money 
            Barter System  
            Types of Money  
            Qualities of Money 
            Functions of Money 
           
          UNIT 2  DEMAND FOR MONEY  
           
               Demand for Money 
               The Liquidity Preference Theory 
               Motives for Holding Money (DD for Money)  
               Determinants of Money Demand  
               Quantity Theory of Money  
               Criticisms of Quantity Theory of Money 
           
          UNIT 3:   SUPPLY OF MONEY  
            Supply of Money – Meaning 
            Determinants of Money Supply 
            Money Stock Composition - (Measuring Money)  
           
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