Information Package / Course Catalogue
Financial Markets and Banking
Course Code: EF312
Course Type: Required
Couse Group: First Cycle (Bachelor's Degree)
Education Language: Turkish
Work Placement: N/A
Theory: 3
Prt.: 0
Credit: 3
Lab: 0
ECTS: 5
Objectives of the Course

The main objective of this course is to help students understand the financial markets, institutions and instruments follow financial developments carry out financial analysis.

Course Content

Why Study Financial Markets and Institutions? Overview of the Financial System, What Do Interest Rates Mean? – Why Do interest Rate Changes?, Why Do interest Rate Changes? – How Do Risk and Term Structure Affect Interest Rate?, Are Financial Markets Efficient? – Structure of Central Banks, Monetary Policy Tools, Goals, Strategy and Tactics, Money Markets – The Bond Market, The Stock Market – The Mortgage Markets The Foreign Exchange Market – The International Financial System.

Name of Lecturer(s)
Lec. Durmuş SEZER
Learning Outcomes
1. To be able to define financial institutions and markets
2.To be able to define and compare financial instruments
3. To be able to define the functions of financial institutions, and to analyze their role in an economy
4.Learns the operation of banking and other financial institutions
5. Understands the basics of risk management in financial institutions
Recommended or Required Reading
1.Mishkin, F. S. and Eakins, S. G (2009), Financial Markets and Institutions, 6th Ed., Pearson-Prentice Hall.
2. Fabozzi, F. J., Modigliani, F., and Jones, F. J. (2007), Foundations of Financial Markets and Institutions, 4th Ed., Pearson-Prentice Hall.
Weekly Detailed Course Contents
Week 1 - Theoretical
Why Study Financial Markets and Institutions? i. DebtMarkets and Interest Rates ii. Stock Market iii. ForeignExchange Market iv. Central Banks v. Structure of theFinancial System vi. Banks and Other FinancialInstitutions
Week 2 - Theoretical
Overview of the Financial System i. Function ofFinancial Market ii. Structure of Financial Market iii.Function of Financial Intermediaries iv. Types ofFinancial Intermediaries v. Regulation of FinancialSystem
Week 3 - Theoretical
What Do Interest Rates Mean? i. Measuring InterestRate ii. The Distinction Between Real and NominalInterest Rate iii. The Distinction Between Interest Rateand Return iv. Interest Rate Risk v. Reinvestment Risk
Week 4 - Theoretical
Why Do interest Rate Changes? i. Determinants ofAsset Demand ii. Supply and Demand in the BondMarket iii. Changes in Equilibrium Interest Rates
Week 5 - Theoretical
How Do Risk and Term Structure Affect Interest Rate ?i. Risk Structure of Interest Rates ii. Term Structure ofInterest Rates
Week 6 - Theoretical
Are Financial Markets Efficient? i. The EfficientMarket Hypothesis ii. Behavioral Finance
Week 7 - Theoretical
Structure of Central Banks i. Structure andIndependence of Central Banks ii. Explaining CentralBank Behaviour
Week 8 - Theoretical
Structure of Central Banks i. Structure andIndependence of Central Banks ii. Explaining CentralBank Behaviour
Week 9 - Theoretical
Monetary Policy Tools, Goals, Strategy and Tactics i.The Central Bank's Balance Sheet ii. Tools ofMonetary Policy iii. Goals of Monetary Policy iv.Central Bank Strategy: Use of Targets v. MonetaryTargeting vi. The New International Trend in MonetaryPolicy Strategy: Inflation Targeting
Week 10 - Theoretical
Money Markets i. Why Do We Need the MoneyMarkets? ii. The Purpose of the Money Markets iii.Who Participates in the Money Markets? iv. MoneyMarket Instruments
Week 11 - Theoretical
The Bond Market i. Purpose of the Capital Market ii.Capital Market Participants iii. Types of Bonds iv.Treasury Bonds v. Bond Yield Calculations
Week 12 - Theoretical
The Stock Market i. Investing in Stocks ii. Computingthe Price of Common Stock iii. How the Market SetsSecurity Prices iv. Stock Market Indexes v. BuyingForeign Stocks
Week 13 - Theoretical
The Mortgage Markets i. Characteristics of theResidential Mortgage ii. Mortgage-Lending Institutionsiii. Secondary Mortgage; Market
Week 14 - Theoretical
The Foreign Exchange Market i. Foreign ExchangeMarket ii. Exchange Rates in the Long Run iii.Exchange Rates in the Short Run iv. ExplainingChanges in Exchange Rates
Assessment Methods and Criteria
Type of AssessmentCountPercent
Midterm Examination1%40
Final Examination1%60
Workload Calculation
ActivitiesCountPreparationTimeTotal Work Load (hours)
Lecture - Theory142370
Individual Work101230
Midterm Examination19110
Final Examination19110
TOTAL WORKLOAD (hours)120
Contribution of Learning Outcomes to Programme Outcomes
PÇ-1
PÇ-2
PÇ-3
PÇ-4
PÇ-5
PÇ-6
PÇ-7
OÇ-1
3
3
3
3
3
3
3
OÇ-2
4
4
4
4
4
4
4
OÇ-3
4
3
3
4
4
4
4
OÇ-4
3
3
3
3
4
4
4
OÇ-5
3
3
3
3
4
4
4
Adnan Menderes University - Information Package / Course Catalogue
2026