Course Information
SemesterCourse Unit CodeCourse Unit TitleT+P+LCreditNumber of ECTS CreditsLast Updated Date
6ITF312Money And Banking3+0+03620.04.2026

 
Course Details
Language of Instruction English
Level of Course Unit Bachelor's Degree
Department / Program International Trade and Finance (Eng)
Type of Program Formal Education
Type of Course Unit Compulsory
Course Delivery Method Face To Face
Objectives of the Course This course is designed to help students understand the connections between money (the Central Bank), financial markets, and the macroeconomy. How are interest rates determined, and how does the Federal Reserve conduct monetary policy? What economic factors drive the yield curves in different bond markets? We will pay particular attention to the banking system, with an eye toward understanding the function and importance of banks. Topics will include the role of the Central Bank as a lender of last resort during the recent, and prior, financial crises, unconventional monetary policy tools such as quantitative easing and forward guidance. We discuss new developments in payment and clearing including cryptocurrencies. We will often begin class with a discussion of current macro-financial market events in the context of our course coverage. The course is appropriate for anyone trying to gain a macroeconomic perspective on capital markets, from investors to bankers, or those simply interested in the linkages between interest rates, banks and the economy.
Course Content Why Study Money, Banking, and Financial Markets? - An Overview of the Financial System
What is Money? The Meaning of Interest Rates 4
The Behaviour of Interest Rates
The Risk and Term Structure of Interest Rates,- The Stock Market, Rational Expectations, Efficient Market Hypothesis
An Economic Analysis of Financial Structure, Financial Crises Contingent Capital
Central Banks and the Bank of Canada Money Creation in the Modern Economy
Tools of Monetary Policy - The Conduct of Monetary Policy: Strategy and Tactics
The Foreign Exchange Market
Course Methods and Techniques Lecture, Problem Solving, Case Study, Question and Answer. Classroom teaching with blackboard and projector. Reading textbooks and other sources. Case studies and simulations to establish a link between theory and practice.
Prerequisites and co-requisities None
Course Coordinator None
Name of Lecturers Dr. Abdullah Bahadır ŞAŞMAZ
Assistants None
Work Placement(s) No

Recommended or Required Reading
Resources The Economics of Money, Banking, and Financial Markets, Frederic Mishkin,
Course Notes Required Textbook: The Economics of Money, Banking, and Financial Markets, Frederic Mishkin,
Documents Friedrich Mishkin, The Theory of Money, Banking and Financial Markets

Course Category
Mathematics and Basic Sciences %25
Social Sciences %15
Field %60

Planned Learning Activities and Teaching Methods
Activities are given in detail in the section of "Assessment Methods and Criteria" and "Workload Calculation"

Assessment Methods and Criteria
In-Term Studies Quantity Percentage
Mid-terms 1 % 40
Final examination 1 % 60
Total
2
% 100

 
ECTS Allocated Based on Student Workload
Activities Quantity Duration Total Work Load
Course Duration 14 3 42
Hours for off-the-c.r.stud 14 5 70
Presentation 1 11 11
Mid-terms 1 14 14
Final examination 1 16 16
Total Work Load   Number of ECTS Credits 6 153

 
Course Learning Outcomes: Upon the successful completion of this course, students will be able to:
NoLearning Outcomes
1 Evaluate the functions of money, the determination of interest rates, and the impact of central bank monetary policies on economic fluctuations and growth.
2 Analyze the operations of diverse financial markets (bond, stock, and foreign exchange) and the specific roles of traditional and alternative financial institutions in promoting economic efficiency.
3 Assess the broader influence of monetary dynamics and financial market changes on consumers, businesses, and the global economy to evaluate financial risks.

 
Weekly Detailed Course Contents
WeekTopicsStudy MaterialsMaterials
1 Introduction to Money, Banking, and Financial Systems Preparing case studies and guiding questions to be discussed in the classroom. Course Textbook Case Studies prepared by the lecturer for interactive learning (Case Study: The Tale of Two Borrowers: Who Gets the Money?)
2 What is Money? History, Definition, and Measurement Preparing case studies and guiding questions to be discussed in the classroom. Course Textbook Case Studies prepared by the lecturer for interactive learning (Case Study: Case Study: The Lira, The Gold, and The Digital Shift)
3 Understanding Interest Rates Preparing case studies and guiding questions to be discussed in the classroom. Course Textbook Case Studies prepared by the lecturer for interactive learning (Case Study: Case Study: Time, Risk, and the Price of Money in Türkiye)
4 The Behaviour of Interest Rates Preparing case studies and guiding questions to be discussed in the classroom. Course Textbook Case Studies prepared by the lecturer for interactive learning (Case Study: Case Study: The Tug of War in Türkiye – Money, Inflation, and the Return to Orthodoxy)
5 Risk and Term Structure of Interest Rates Preparing case studies and guiding questions to be discussed in the classroom. Course Textbook Case Studies prepared by the lecturer for interactive learning (Case Study: Case Study: Decoding the Yield Curve and Risk Premiums in Türkiye)
6 The Stock Market and Market Efficiency Preparing case studies and guiding questions to be discussed in the classroom. Course Textbook Case Studies prepared by the lecturer for interactive learning (Case Study: Case Study: Navigating the Bosphorus Bull Run – Expectations, Efficiency, and Macro Shocks in Türkiye)
7 Financial Structure and Asymmetric Information Preparing case studies and guiding questions to be discussed in the classroom. Course Textbook Case Studies prepared by the lecturer for interactive learning (Case Study: Case Study: Financing "BursaTech Auto Parts" in a Bank-Dominated Market)
8 Midterm Exam
9 Bank Management Course Textbook
10 Banking Regulation and Industry Structure Preparing case studies and guiding questions to be discussed in the classroom. Course Textbook Case Studies prepared by the lecturer for interactive learning (Case Study: Case Study: The Crisis of Marmara Universal Bank (MUB))
11 Financial Crises Preparing case studies and guiding questions to be discussed in the classroom. Course Textbook Case Studies prepared by the lecturer for interactive learning
12 Central Banks Preparing case studies and guiding questions to be discussed in the classroom. Course Textbook Case Studies prepared by the lecturer for interactive learning
13 The Money Supply Process Preparing case studies and guiding questions to be discussed in the classroom. Course Textbook Case Studies prepared by the lecturer for interactive learning
14 Monetary Policy: Tools, Strategy, and Tactics Preparing case studies and guiding questions to be discussed in the classroom. Course Textbook Case Studies prepared by the lecturer for interactive learning
15 Money Demand and Inflation Preparing case studies and guiding questions to be discussed in the classroom. Course Textbook Case Studies prepared by the lecturer for interactive learning

 
Contribution of Learning Outcomes to Programme Outcomes
P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12
All 2 2 5 5 4 3 2 4 5 4 3 1
C1 5 2 4 4 4 3 2 3 3 3 2 1
C2 5 2 5 4 4 3 2 4 4 4 3 1
C3 5 2 5 5 4 3 2 4 5 4 3 1

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