ECONOMICS AND FINANCE
Bachelor	TR-NQF-HE: Level 6	QF-EHEA: First Cycle	EQF-LLL: Level 6

Course Introduction and Application Information

Course Code	Course Name	Semester	Theoretical	Practical	Credit	ECTS
IF3224	Financial Markets and Institutions	Spring	3	0	3	6

This catalog is for information purposes. Course status is determined by the relevant department at the beginning of semester.

Basic information

Language of instruction:	English
Type of course:	Departmental Elective
Course Level:	Bachelor’s Degree (First Cycle)
Mode of Delivery:	Face to face
Course Coordinator :	Dr. Öğr. Üyesi BAHAR KÖSEOĞLU
Course Lecturer(s):	Prof. Dr. ASLI YÜKSEL
Recommended Optional Program Components:	None
Course Objectives:	The purpose of this course is to guide students in developing critical thinking skills as applied to financial markets and institutions. Topics include the determination of asset prices; the risk and term structure of interest rates; the efficient markets hypothesis; money markets, and capital markets.

Learning Outcomes

The students who have succeeded in this course;
I. Learns functions of financial markets and institutions
II. Understands structure of financial system
III. Uses yield curve to make an inference about short term interest rates in the future
IV. Evaluates the implications of the efficient market hypothesis
V. Understands the factors affecting interest rates in the market
VI. Learns characteristics of financial instruments traded in the money market
VII. Identifies characteristics of residential mortgages
VIII. Learns how stock and bond markets operate
IX. Gets information about the foreign exchange markets

Course Content

functions of financial markets and institutions, structure of financial system, yield curve, the efficient market hypothesis, stock and bond markets, foreign exchange markets

Weekly Detailed Course Contents

Week	Subject	Related Preparation
1)	Why Study Financial Markets and Institutions?	To read the related chapter in the text book
2)	Overview of the Financial System	To read the related chapter in the text book
3)	What do Interest Rates Mean and What is Their Role in Valuation?	To read the related chapter in the text book
4)	Why Do Interest Rates Change?	To read the related chapter in the text book
5)	How do Risk and Term Structure Affect Interest Rates?	To read the related chapter in the text book
6)	Are Financial Markets Efficient?	To read the related chapter in the text book
7)	Review	To read the text book and lecture notes for the exam
8)	Money market	To read the related chapter in the text book
9)	Bond market	To read the related chapter in the text book
10)	Stock market	To read the related chapter in the text book
11)	Review	To read the text book and lecture notes for the exam
12)	Mortgage Market	To read the related chapter in the text book
13)	The Foreign Exchange Market	To read the related chapter in the text book
14)	The Foreign Exchange Market	To read the related chapter in the text book

Sources

Course Notes / Textbooks:	Textbook / Required Material Mishkin, Frederic and Stanley G. Eakins, Financial Markets & Institutions, 6th edition, Pearson International Edition, 2009
References:	Mecut değil - None

Evaluation System

Semester Requirements	Number of Activities	Level of Contribution
Midterms	2	% 60
Final	1	% 40
Total		% 100
PERCENTAGE OF SEMESTER WORK		% 60
PERCENTAGE OF FINAL WORK		% 40
Total		% 100

ECTS / Workload Table

Activities	Number of Activities	Duration (Hours)	Workload
Course Hours	14	3	42
Study Hours Out of Class	15	2	30
Midterms	2	30	60
Final	1	20	20
Total Workload			152

Contribution of Learning Outcomes to Programme Outcomes

No Effect	1 Lowest	2 Low	3 Average	4 High	5 Highest

	Program Outcomes	Level of Contribution
1)	Build up a body of knowledge in mathematics and statistics, to use them, to understand how the mechanism of economy –both at micro and macro levels – works.	3
2)	Understand the common as well as distinctive characters of the markets, industries, market regulations and policies.	4
3)	Develop an awareness of different approaches to the economic events and why and how those approaches have been formed through the Economic History and understand the differences among those approaches by noticing at what extent they could explain the economic events.	4
4)	Analyze the interventions of politics to the economics and vice versa.	4
5)	Apply the economic analysis to everyday economic problems and evaluate the policy proposals for those problems by comparing opposite approaches.	4
6)	Understand current and new economic events and how the new approaches to the economics are formed and evaluating.	4
7)	Develop the communicative skills in order to explain the specific economic issues/events written, spoken and graphical form.	3
8)	Know how to formulate the economics problems and issues and define the solutions in a well-formed written form, which includes the hypothesis, literature, methodology and results / empirical evidence.	4
9)	Demonstrate the quantitative and qualitative capabilities and provide evidence for the hypotheses and economic arguments.	4
10)	Understand the information and changes related to the economy by using a foreign language and communicate with colleagues.	1