This book is based on the special Class Room Lectures on "Financial Economics" delivered (1994-2017) at the Department of Commerce, Delhi School of Economics (DSE), South Campus, and SOL, University of Delhi. Policy shifting from Financial Repression to Financial Liberalization and from Debt Creating to Non-Debt Creating foreign capital served as an underlying backbone of New Economic Policy of 1991 initiated by Dr Manmohan Singh. How to control financially repressed economy after liberalization?, the book tries to answer. It deals with the detailed analytics of the theories of Financial Repression and Liberalization (McKinnon-1973); Financial Deepening (Shaw-1973); Financial Dualism and Crowding Out (Taylor-1988) and Adverse Selection (Stiglitz-2000). How IMF stabilization model works to resolve the crisis in the problem ridden country? It provides an analytical derivation of yield curve in a simple language. It also deals with three important theories of term structure such as: Pure Expectation Theory (Hicks-1939); Market Segmentation Theorem (Malkiel-1966); and Preferred Habitat Theory (Modigiliani and Rechard-1966). The study also deals with a detailed analysis of Flow of Fund Matrix in India, the area where India has served as the founder member in 1951. Book also provides the changing phases of Banking Industry in India, total conversion of DFIs, and major reforms in monetary policy of India. Further, empirical findings have been made available in a simple language for the benefits of readers. This book avoids superfluous and overlapping language to save the time of readers.