COURSE INTRODUCTION AND APPLICATION INFORMATION

eco.ieu.edu.tr

Course Name

Code	Semester	Theory (hour/week)	Application/Lab (hour/week)	Local Credits	ECTS
	Fall

Prerequisites

	ECON 101	To succeed (To get a grade of at least DD)
and	ECON 102	To succeed (To get a grade of at least DD)
and	MATH 101	To succeed (To get a grade of at least DD)
and	MATH 102	To succeed (To get a grade of at least DD)

Course Language

Course Type

Required

Course Level

Mode of Delivery

Teaching Methods and Techniques of the Course

Course Coordinator

Course Lecturer(s)

Assistant(s)

Course Objectives
Learning Outcomes	The students who succeeded in this course; Will be able to explain all money matters, all kinds of foreign exchange dealings, and all banking practices including deposits, consumer credits, and other consumer oriented services of commercial banks. Will be able to analyze money and all monetary issues both theoretically and experimentally. Will be able to discuss foreign exchange earning activities given the fact that the Turkish economy has been geared for some years to export led macro growth model. Will be able to give knowledge of foreign trade at a basic level. Will be able to explain the requirements and essentials of exporting commodities and services.
Course Description

Course Category	Core Courses
	Major Area Courses	X
	Supportive Courses
	Media and Managment Skills Courses
	Transferable Skill Courses

WEEKLY SUBJECTS AND RELATED PREPARATION STUDIES

Week	Subjects	Required Materials
1	Money & Monetary Policy & Banks and BankingBrief History of Turkish Banking	The Money and Banking Course Notes by Mr Halit Soydan
2	Capital Market Experiments of the Ottomans & the Republican Era & Legislative Framework for Banking in Turkey	Relevant Chapter and Sections of the Course Notes of Mr Soydan
3	Banking Techniques & Capital AdequacyExchange Adequacies & RiskWeighted Capital Base Ratio in Turkish Banking	The Regulatory and Supervisory Authority for Turkish Banking regulations are suggested to be examined
4	Basic Forex (Foreign Exchange) DefinitionsOther Foreign Exchange Ratios for Banks in TurkeyInterest Rates in Turkish Banking & Real Interest RatesTaxation on Interest Earnings in Turkey at Present Time	The Bank for International Settlements' WEB pages are advised to be read
5	The Mathematics of Interest RatesSimple Interest Concepts and Discounting Notations	The Course Notes of Mr. Soydan
6	Interest Calculations in Securities BusinessSome Practical Capital Market FormulasFuture and Present Value on Zero Coupon SecuritiesPresent Value on Securities with Coupons (Clean Method)Present Value on Securities with Coupons (Dirty Method)	Mr. F Mishking’s relevant textbook is suggested to be read
7	Reserve Requirements and Solvency Rules for Banks in TurkeyTransaction Tax and Other Charges in Turkish BankingBanking and Insurance Transaction TaxSupport Fund for Selffinancing (KKDF)Support and Price Stability Fund (DEFIF)Turk Eximbank Facilities	Mr. Halit Soydan’s Course Notes and Turkish Central Benk’s WEB pages are to be consulted
8	TRLIBORCheck Regulations in TurkeySyndicated LoansMoney Laundering	The Commercial Code of Turkey and relevant Acts, and Mr. Soydan’s Course Notes recommended to be read before the class discussions
9	Graphic Explanation of Interest Rate Caps, Floors and CollarsInterest Rate forwardsInterest Rate Swaps	The relevant sections of Mr. Soydan’s Course Notes
10	Foreign Exchange Forwards (Outright forwards)Foreign Exchange SwapsFX SwapsMoney Swaps	Various internet addresses are suggested, and Mr. Soydan’s Course Notes are consulted
11	The Role of Commercial Banks in Handling and Financing of Foreign TradePayment Systems in Foreign TradeDocumentary Credits (also known as letters of credit) and UCP 500 RulesThe L/C Application to a Bank	Exchange Control regulations of Turkey are read for class discussions
12	Trade Terms in International Contracts, INCOTERMSShipping DocumentsMarine Insurance in a Nutshell	The International Chamber of Commerce and Lloyds several resources are given to the students prior to the class discussions
13	Managing Currency Risk in Regard to L/CsOther Financial Institutions in Turkey	BASEL I and II are explained by Mr. Halit Soydan
14	LeasingFactoring and ForfaitingExchange Bureaus (Money Changers)	The Turkish Treasury’s WEB pages and Mr. Soydan’s Course Notes are suggested
15	Consumer Loan CompaniesCapital Markets	Mr. Soydan’s published book of The Capital Markets is suggested to have a look
16	Review of the Semester

Course Notes/Textbooks	Mr. Halit Soydan’s own Course Notes , and Mr. Soydan’s published book: The Capital Markets
Suggested Readings/Materials	Economics of Money, Banking, and Financial Markets by Frederic S. Mishkin

EVALUATION SYSTEM

Semester Activities	Number	Weigthing
Participation	16	15
Laboratory / Application
Field Work
Quizzes / Studio Critiques
Portfolio
Homework / Assignments	1	15
Presentation / Jury
Project
Seminar / Workshop
Oral Exam
Midterm	1	30
Final Exam	1	40
Total

Weighting of Semester Activities on the Final Grade		60
Weighting of End-of-Semester Activities on the Final Grade		40
Total

ECTS / WORKLOAD TABLE

Semester Activities	Number	Duration (Hours)	Workload
Course Hours (Including exam week: 16 x total hours)	16	3	48
Laboratory / Application Hours (Including exam week: 16 x total hours)	16
Study Hours Out of Class	16	2
Field Work
Quizzes / Studio Critiques
Portfolio
Homework / Assignments	1	15
Presentation / Jury
Project
Seminar / Workshop
Oral Exam
Midterms	1	15
Final Exams	1	25
		Total	135

COURSE LEARNING OUTCOMES AND PROGRAM QUALIFICATIONS RELATIONSHIP

#	Program Competencies/Outcomes	* Contribution Level
#	Program Competencies/Outcomes	1	2	3	4	5
1	To have a sound knowledge of the quantitative and qualitative methods that will help to examine the premises of different theories for an applied subject so that a contribution to solving current economic problems can be made.			X
2	To have the experience of writing, using software, and doing presentations in the newspapers, magazines, meetings, panels, and in equivalent virtual platforms (internet), in order to share their accumulated knowledge and problem solving ability acquired during their education.
3	To be able to participate in academic, professional, regional, and global networks and to utilize these networks efficiently.
4	To have adequate social responsibility and awareness with regards to the needs of the society and to have sufficient experience and qualifications to organize and support the activities to influence the social dynamics in line with the social goals.
5	To be able to integrate the knowledge and training acquired during the university education with personal and work experience and produce a synthesis of knowledge she requires.				X
6	To have the ability to evaluate his/her advance (post graduate) level educational needs and do necessary planning to fulfill those needs through the acquired capability to think analytically and critically.					X
7	To have sufficient practical and theoretical knowledge base in order to define the economic agents and their interaction both in the national and global level, to process economic data and to implement scientific research for development of economic policies.
8	Keeping in mind that economics is a social science, to have the skills to integrate social dynamics into economic process both as an input and an output and to be open to theoretical innovations in this direction.
9	To associate accumulated knowledge acquired during the university education with historical and cultural qualities of the society and to convey it to different groups.
10	To be able to follow knowledge and change in economics and communicate with colleagues in a foreign language.		X
11	To possess social, scientific and ethical values at the data collection, interpretation and dissemination stages of economic analysis.			X
12	To have advanced level of speaking and writing skills of a second foreign language to support continuation of post graduate professional and individual development

*1 Lowest, 2 Low, 3 Average, 4 High, 5 Highest