Dokuz Eylül University Information Package / Courses Catalog

Description of Individual Course Units

Course Unit Code	Course Unit Title	Type Of Course	D	U	L	ECTS
ECO 3003	MONEY AND BANKING	COMPULSORY	3	0	0	6

Offered By

Economics

Level of Course Unit

First Cycle Programmes (Bachelor's Degree)

Course Coordinator

PROFESSOR DOCTOR SAADET KASMAN

Offered to

Economics

Course Objective

This course aims at providing a broad understanding of money, banking, and capital markets where borrowers, lenders, savers, and investors trade risks and returns.

Learning Outcomes of the Course Unit

1	Identify the basic concepts in finance such as interest rate, risk structure and term structure of interest rates, rates of return, financial market efficiency, asymmetric information, lemons problem and moral hazard by lectures and discussions,
2	Demonstrate the understanding of portfolio allocation decision by using real life portfolio decision examples
3	Acquire basic knowledge about the financial markets, institutions and instruments by lectures.
4	Relate the financial system with the whole economy by following the news in the media.

Mode of Delivery

Face -to- Face

Prerequisites and Co-requisites

ECO 2003 - MACROECONOMICS I

Recomended Optional Programme Components

None

Course Contents

Week	Subject	Description
1	Introducing Money and the Financial System Money and the Payments System	1&2
2	Overview of the Financial System	3
3	Interest Rates and Rates of Return	4
4	The Theory of Portfolio Allocation	5
5	Determining Market Interest Rates	6
6	Risk Structure and Term Structure of Interest Rates	7
7	Derivative Securities and Derivative Markets	9
8	Information and Financial Market Efficiency	10
9	Reducing Transactions Costs and Information Costs	11
10	What Financial Institutions Do	12 & Lecturere Notes
11	The Business of Banking	13
12	The Banking Industry	14& Lecture Notes
13	Why Banks Fail	Lecture Notes
14	Class Discussion and Review

Recomended or Required Reading

1. R. Glenn Hubbard (2005) Money, the Financial System and the Economy, Addison Wesley.
2. Lecture Notes

Planned Learning Activities and Teaching Methods

1. Lecture
2. Review sessions
3. Journal keeping about the financial news

Assessment Methods

SORTING NUMBER	SHORT CODE	LONG CODE	FORMULA
1	MT	Midterm
2	FN	Final
3	FCG	FINAL COURSE GRADE	MT * 0.40 + FN * 0.60
4	RST	RESIT
5	FCGR	FINAL COURSE GRADE (RESIT)	MT * 0.40 + RST * 0.60

*** Resit Exam is Not Administered in Institutions Where Resit is not Applicable.

Further Notes About Assessment Methods

1. Midterm Exam
2. Final Exam
3. Keeping journal about the financial news

Assessment Criteria

1. The learner will clearly define basic concepts related to finance.
2. The learner will compare different financial insturements and institutions.
3. The learner will demonstrate understanding of portfolio allocation decisions of different investors.
4. Connect real life financial developments with the theoretical framework by following news in the media.

Language of Instruction

English

Course Policies and Rules

1. Attending at least 70 percent of lectures is mandatory.
2. Plagiarism of any type will result in disciplinary action.

Contact Details for the Lecturer(s)

To be announced.

Office Hours