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ISL 535 - Financial Markets and Institutions

Graduate Education Institute · Business Administration · Master

ECTS: 7.5 T+P+L: 3+0+0 Departmental Elective
Coordinator: Prof. Dr. Özgür KÖKALAN

Course Objective

This course gives an introduction to the main features of financial institutions and markets. The first part of the course covers interest rates and securities pricing, including rate of return calculations, how markets determine the overall level of interest rates, and why different securities pay different interest rates. The second part of the course covers financial markets, related financial institutions and the assets that are traded on these markets, including the money, bond, stock, and derivatives markets.

Course Content

This course gives an introduction to the main features of financial institutions and markets. The first part of the course covers interest rates and securities pricing, including rate of return calculations, how markets determine the overall level of interest rates, and why different securities pay different interest rates. The second part of the course covers financial markets, related financial institutions and the assets that are traded on these markets, including the money, bond, stock, and derivatives markets.

Required Resources

Mishkin, F. S. (2007). The economics of money, banking, and financial markets. Pearson education.

Recommended Resources

Mishkin, F. S. (2007). The economics of money, banking, and financial markets. Pearson education.

Explanations

Evaluation grade in the course will be determined by attendance, quizzes, a mid-term examination and a final examination. No extra credits will be granted.  
Specific grade determination will be as follows: 

  • Attendance 5% 
  • Quizzes 20% 
  • Mid-Term Examination 25% 
  • Final Examination 50% 

Rules

This course follows IZU's attendance policies. The University says that you can have four unexcused absences, but the University does not really differentiate between excused and unexcused absences. Weddings, funerals, illnesses (cold, flu, vertigos etc.), missing the shuttle in the morning and having a regular job in or out of the campus are not excused absences. In fact, the lecturer will not accept any excuse for being an absentee. Do not bring any medical reports for your illness. It will not be accepted as an excuse. So plan accordingly. If you have more than four absences, you will fail the class. In this case, you will not be allowed to take the final exam. Your letter grade will be DZ.

 

The lecturer will take attendance at the beginning of each lecture and will upload it to the KAMPUS system directly. Please do not forget that coming to class more than ten minutes late will be considered an absence, but please come to class even if you're going to be marked absent because the information we learn in class is important.  If you leave before the end of a lecture, you will be marked absent for this lecture.

 

The easiest solution to all of this, of course, is just not to miss lectures.

Course Learning Outcomes

  1. Develop the ability to give information about financial institutions, financial crises and financial system
  2. Develop the ability to explain essentials of financial markets
  3. Develop the ability to understand current topics in financial markets

Core Area Distribution

(31) Social and Behavioural Science%50 (34) Business and Administration%50

Teaching Methods

ExpressionQuestion-AnswerExercise and PracticeSelf studyProblem Solving

Assessment & Evaluation

HomeworkTesting (Essay / Tests: True-Falls, multiple-choice, short answer, matching)

ECTS / Workload

ActivityQuantityDuration (h)Total Workload
Course Duration (Including Exam Week)16348
Out of Class Study Period16580
Midterm22040
Quiz000
Assignment000
Practice000
Final13030

Course Schedule

WeekSubjectPreparation
1Overview of the Financial SystemMishkin (Ch.2)
2Interest RatesMishkin (Ch.3)
3Interest RatesMishkin (Ch.4)
4Term Structure of Interest RatesMishkin (Ch.5)
5Efficient Financial MarketsMishkin (Ch.6)
6Financial InstitutionsMishkin (Ch.7)
7Financial CrisesMishkin (Ch.8)
8Ara SınavAra Sınav
9Central Banks and the Federal Reserve SystemMishkin (Ch.9)
10Conduct of Monetary PolicyMishkin (Ch.10)
11The Money Markets, The Bond MarketMishkin (Ch.11,12)
12The Stock Market, The Mortgage MarketsMishkin (Ch.13,14)
13Presentations
14Presentations
15Presentations
16Final SınavıFinal Sınavı