Money & Capital Markets

Course Code:

ECON 365

Course Period:

Spring

Course Type:

Core

P:

3

Application:

0

Credits:

3

ECTS:

5

Course Language:

İngilizce

Course Coordinator:

Ayşe Sevencan

Courses given by:

Ayşe Sevencan

Course Objectives:

By completing the course students will be able to understand forces that determine prices of financial. The course will also develop an understanding of how interest rates, prices of bonds, international capital flows, and exchange rates are simultaneously determined. Students will also be familiar with the functioning of non-bank financial intermediaries such as Investment banks and Hedge Funds. Students also will have an understanding of the Financial Crises and their affect on Real Economy.

Course Content:

The structure and operation of financial markets, the determination of interest rates and yields and their relation with the asset prices. Examining Hendge Funds, Derivatives, Investment Banks and Shadow Banking System.

Course Methodology:

1: Lecture, 2: Question-Answer, 3: Discussion, 12: Case Study

Course Evaluation Methods:

A: Testing, B: Experiment, C: Homework, Q: Quiz

Vertical Tabs

Course Learning Outcomes

Learning Outcomes	Program Learning Outcomes	Teaching Methods	Assessment Methods
Exploring the functions and roles of the financial system in the economy	1, 4	1, 2, 3	A, C
A general discussion on financial assets	1, 2, 4	1, 2, 3	A, C
Learning about gathering information in the financial system	1, 3, 6	1, 2, 3	A, C
Studying the determination of interest rates and their relation with the asset prices, Demand Supply analysis of Funds Market	1, 2, 4, 6	1, 2, 3	A, C
Examining the structure and functioning of Investment Banks, Mutual Funds, Hedge Funds, and the Shadow Banking System	1, 2, 4, 6	1, 2, 12	A, C
Studying Financial Crises and their relation with real economy	1, 2, 4, 6	1, 3,12	A, C

Course Flow

Week	Topics	Study Materials
1	The Financial system	Chapter 1
2	Money and the Payments System	Chapter 2
3	Interest Rates and Rates of Return	Chapter 3
4	Determining Interest Rates	Chapter 4
5	The Risk Structure and Term Structure of Interest Rates	Chapter 5
6	The Stock Market, Information, and Financial Market Efficiency	Chapter 6
7	Review and Midterm
8	Derivatives and Derivative Markets	Chapter 7
9	The Market for Foreign Exchange	Chapter 8
10	Transactions Costs, Asymmetric Information, and the Structure of the Financial System	Chapter 9
11	The Economics of Banking	Chapter 10
12	Investment Banks, Mutual Funds, Hedge Funds, and the Shadow Banking System	Chapter 11
13	Financial Crises and Financial Regulation	Chapter 12
14	Review

Recommended Sources

Textbook		Hubbard R.G, O’Brien A.P., Money Banking and the Financial System, Pearson, 2nd edition
Additional Resources		MyEconLab

Material Sharing

Documents		Media documents of recent news on financial markets, analyses and journal articles.
Assignments		5 MyEconLab Assignments
Exams		1 mid-term and 1 final examination

Assessment

IN-TERM STUDIES	NUMBER	PERCENTAGE
Mid-terms	1	50
Quizzes (attendance, presentation, etc.)	0	0
Assignments	5	50
	Total	100
Contribution of Final Examination to Overall Grade		40
Contribution of In-Term Studies to Overall Grade		60
	Total	100

Course’s Contribution to Program

No	Program Learning Outcomes	Contribution
No	Program Learning Outcomes	1	2	3	4	5
1	Students can keep themselves informed and analyze the current economic development in Turkey and in the world from an international political economy perspective paying a particular attention to the interaction of the Turkish economy with the global economy.			X
2	Being aware of the development and accumulation of economic thought, students can master qualitative and quantitative knowledge and methods to test various economic theories that can be applied to the analysis of the current economic problems.				X
3	Students can use statistical and econometric analyses by learning how to use information technologies that have validity and widespread use in the field of economics.
4	By learning how to learn in the field of economics, students can research and work individually or as a team using the Turkish and English academic resources.					X
5	Being aware of the ethical values, students know the individual, social and ecological dimensions of the concept of social responsibility and can prove that they understand the active citizenship duty that falls upon them within this framework.
6	Students can clearly express, present and share their knowledge, the outcomes of their studies, their ideas and comments to people in their field or other disciplines/units using the necessary data, in national and international academic and professional environments, in Turkish or English.				X
7	Students can show that understanding the universality of social rights and the concepts of social justice, which form the basis of the modern societies, and the importance of scientific perspective, which is necessary to the social development and global competitiveness.

ECTS

Activities	Quantity	Duration (Hour)	Total Workload (Hour)
Course Duration (Including the Exam Week: 15 x total course hours)	15	3	45
Hours for off-the-classroom study (Pre-study, practice)	15	3	45
Mid-terms	1	10	10
Quizzes (attendance, presentation, etc.)	2	5	10
Assignments	0	0	0
Final Examination	1	10	10
Total Work Load			120
Total Work Load / 25 (s)			4,8
ECTS Credit of the Course			5

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