Information Package / Course Catalogue
Banking Products Valuation and Sales
Course Code: BFN561
Course Type: Area Elective
Couse Group: Second Cycle (Master'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)
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. To know and be able to apply the rules for entering new markets by using the modern marketing and sales techniques
5.To be able to gain general evaluation ability
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. Debt Markets and Interest Rates ii. Stock Market iii. Foreign Exchange Market iv. Central Banks v. Structure of the Financial System vi. Banks and Other Financial Institutions
Week 2 - Theoretical
Overview of the Financial System i. Function of Financial Market ii. Structure of Financial Market iii. Function of Financial Intermediaries iv. Types of Financial Intermediaries v. Regulation of Financial System
Week 3 - Theoretical
What Do Interest Rates Mean? i. Measuring Interest Rate ii. The Distinction Between Real and Nominal Interest Rate iii. The Distinction Between Interest Rate and Return iv. Interest Rate Risk v. Reinvestment Risk
Week 4 - Theoretical
Why Do interest Rate Changes? i. Determinants of Asset Demand ii. Supply and Demand in the Bond Market 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 of Interest Rates
Week 6 - Theoretical
Are Financial Markets Efficient? i. The Efficient Market Hypothesis ii. Behavioral Finance
Week 7 - Theoretical
Structure of Central Banks i. Structure and Independence of Central Banks ii. Explaining Central Bank Behaviour
Week 8 - Intermediate Exam
Midterm Exam
Week 9 - Theoretical
Monetary Policy Tools, Goals, Strategy and Tactics i. The Central Bank's Balance Sheet ii. Tools of Monetary Policy iii. Goals of Monetary Policy iv. Central Bank Strategy: Use of Targets v. Monetary Targeting vi. The New International Trend in Monetary Policy Strategy: Inflation Targeting
Week 10 - Theoretical
Money Markets i. Why Do We Need the Money Markets? ii. The Purpose of the Money Markets iii. Who Participates in the Money Markets? iv. Money Market 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. Computing the Price of Common Stock iii. How the Market Sets Security Prices iv. Stock Market Indexes v. Buying Foreign Stocks
Week 13 - Theoretical
The Mortgage Markets i. Characteristics of the Residential Mortgage ii. Mortgage-Lending Institutions iii. Secondary Mortgage; Market
Week 14 - Theoretical
The Foreign Exchange Market i. Foreign Exchange Market ii. Exchange Rates in the Long Run iii. Exchange Rates in the Short Run iv. Explaining Changes in Exchange Rates
Week 15 - Theoretical
The International Financial System i. Intervention in the Foreign Exchange Market ii. Balance of Payments iii. Exchange Rate Regimes in the International Financial System iv. Capital Controls
Week 16 - Final Exam
Final Exam
Assessment Methods and Criteria
Type of AssessmentCountPercent
Midterm Examination1%40
Final Examination1%60
Workload Calculation
ActivitiesCountPreparationTimeTotal Work Load (hours)
Lecture - Theory142370
Individual Work72228
Midterm Examination110111
Final Examination115116
TOTAL WORKLOAD (hours)125
Contribution of Learning Outcomes to Programme Outcomes
PÇ-1
PÇ-2
PÇ-3
PÇ-4
PÇ-5
PÇ-6
PÇ-7
PÇ-8
PÇ-9
OÇ-1
3
3
5
3
4
4
4
4
4
OÇ-2
4
4
4
3
3
3
5
5
3
OÇ-3
3
4
2
5
3
3
3
3
3
OÇ-4
4
4
3
3
3
3
3
3
3
OÇ-5
3
3
3
3
5
4
4
4
4
Adnan Menderes University - Information Package / Course Catalogue