Course Title: Apply economic principles to work in the financial services industry
Part B: Course Detail
Teaching Period: Term2 2016
Course Code: ECON5050C
Course Title: Apply economic principles to work in the financial services industry
School: 650T Vocational Business Education
Campus: City Campus
Program: C6148 - Advanced Diploma of Accounting
Course Contact: Ben Sethia
Course Contact Phone: +61 3 9925 5982
Course Contact Email: firstname.lastname@example.org
Name and Contact Details of All Other Relevant Staff
Anthony Di Stasio
Nominal Hours: 60
Regardless of the mode of delivery, represent a guide to the relative teaching time and student effort required to successfully achieve a particular competency/module. This may include not only scheduled classes or workplace visits but also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities.
Pre-requisites and Co-requisites
This unit describes the skills and knowledge required to apply broad principles of financial economics that underpin a range of tasks and functions in the financial services industry. It includes understanding how financial instruments are priced in markets, and techniques and processes government and organisations use to manage financial risk, demonstrating broad knowledge of economic theories and related decision making in a national and organisational economic context.
It applies to individuals who have an understanding of economics and how this impacts on work in the financial services industry. It also underpins other skills required for work in the financial services industry and may be applied in all sectors of the industry.
National Codes, Titles, Elements and Performance Criteria
National Element Code & Title:
FNSINC601 Apply economic principles to work in the financial services industry
1. Apply economic principles and theories
1.1 Develop and apply knowledge of economic principles relevant to the industry 1.2 Apply microeconomic theory of markets and influences on financial products and services to determine structure of organisation 1.3 Apply capital adequacy regulation and requirements to work functions 1.2 Apply microeconomic theory of markets and influences on financial products and services to determine structure of organisation 1.3 Apply capital adequacy regulation and requirements to work functions
2. Evaluate economic aspects that apply to decision making
2.1 Apply relevant financial modelling techniques to economic data to inform decision making 2.2 Analyse and apply appropriate asset pricing models 2.3 Apply models to determine organisational value in relation to capital structure
3. Review own work
3.1 Evaluate own work in context of relevant economic principles 3.2 Improve performance through understanding of how economics applies to own decision making
4. Maintain personal understanding of economic policies
4.1 Research current economic theories and their impact on the industry to ensure relevant current knowledge 4.2 Integrate contemporary economic principles into work practices
Details of Learning Activities
A range of learning activities are planned for this course including self-paced and collaborative classroom based activities.
The self-paced activities will be delivered thought various technology platforms and include your contribution to wikis and discussion threads, reflective journals, quizzes and interactive sessions.
The collaborative classroom based activities will include group discussion, group problem solving activities and opportunities to practice your skills in a simulated/real workplace environment.
We expect you to participate and contribute in all scheduled learning activities.
Introduction to the course including:
|2||11/7 /16||Introduction to Economics||Online Test 5%|
|4||25/7/16||Micro economic Principles||Online Test 5%|
|5||1/8/16||Market Failure||Online Test 5%|
|6||8/8/16||Firms & Market Structures|
|7||15/8/16||Macroeconomic Factors||Online Test 5%|
|8||22/8/16||Macroeconomic Factors||Online Test 5%|
|Term Break 23 August-4 September|
|9||5/9/16||Fiscal & Monetary Policy|
|10||12/9/16||Fiscal & Monetary Policy||Online Test 5%|
|11||19/9/16||The Balance of Payments & Exchange Rates|
|12||26/9/16||The Balance of Payments & Exchange Rates||Online Test 5%|
Online Test 5%Assessment 2 Research Assignment Due
|15||17/10/16||Test||Assessment 3 Final Exam 50%|
The above schedule is a guide only and may vary as deemed necessary by the teacher.
The nominal hours associated with this are a guide only and represent the total teaching time and student effort required to successfully complete the course. This may include not only scheduled classes bit also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities.
Di Stasio & Georgeson (2016) Apply Economic Principles to Work in the Financial Services Industry, 3rd Edn, Better Teams Publications
Overview of Assessment
In order to achieve competency in this unit, you must provide:
Evidence of the ability to:
- research economic trends, evaluate impacts, and access and interpret corporate regulations
- analyse and apply a range of financial modelling techniques and tools
- reflect on and review own performance in applying knowledge of economic principles in day-to-day work functions
To complete the unit requirements safely and effectively, the individual must:
- outline key features of common economic theories that relate to the financial services industry
- outline key features of microeconomic principles and how they relate to financial services industry products, services and organisational practices
- explain capital adequacy requirements for financial services organisations based on financial product mix
- explain asset pricing models and their use in identifying organisational value and capital structures
- explain and apply economic theories and valuation of assets
- identify and apply financial modelling techniques and tools
- outline industry or organisation financial markets, products and services
- describe key features of relevant legislation, statutory requirements and industry codes of practice
- identify and describe techniques and tools for evaluation and interpretation of research data
- describe the economic and political climate relating to the financial services industry
Assessment must be conducted in a safe environment where evidence gathered where evidence gathered demonstrates consistent performance of typical activities experienced in the industry capability field and include access to:
- common office equipment, technology, software and consumables.
- current financial services industry economic literature and research.
You are advised that you are likely to be asked to personally demonstrate your assessment work to your teacher to ensure that the relevant competency standards are being met.
Feedback will be provided throughout the semester in class and/or online discussions. You are encouraged to ask and answer questions during class time and online sessions so that you can obtain feedback on your understanding of the concepts and issues being discussed. Finally, you can email or arrange an appointment with your teacher to gain more feedback on your progress.
You should take note of all feedback received and use this information to improve your learning outcomes and final performance in the course.
The aim of this unit is to provide students with the economic literacy and numeracy skills that are required by people entering the financial services industry.
Students will gain an awareness and understanding of economic principles necessary to interpret economic events, apply economic principles to their work, and appreciate the impact of economics on their lives.
- On-Line Economic Questions 40%
These are to be completed each fortnight or when the teacher indicates. They test your learning for each of the chapters. They include a mix of True/False and Multiple choice.
There are 8 tests worth 5% each.
After you submit your responses on-line you will receive your result.
Economic Research 10% Due Week 13
There are 5 (2 marks each) research questions which you need to submit.
(1) Exchange Rates
Page 341 Activity 1 & 2 Text-Apply Economic Principles
(2) Australian Trade
Page 368 Q.15 Australian Trade- Text-Apply Economic Principles
(3) Debt Clock
Page 256 Activity- Text-Apply Economic Principles
(4) The Budget - Internet Research
a. Total Federal Budget revenue receipts for 2015-2016
b. The six main sources of revenue
c. Total Federal Government Outlays/Expenses for 2015-2016
d. The six main areas of outlays/expenses
e. The expected budget outcome (deficit or surplus)
Provide graphs and tables to illustrate
(5) Internet Research Interest Rate Decisions
Go to http://www.rba.gov.au/
Click on cash rate and Interest rate changes will appear.
Describe changes in interest rates since March 2008.
Outline factors that explained the movement in interest rates during the period 2008-2016.
3. Final Exam 50%
This will consist of Multiple Choice, True/False, Short Answer Questions and Extended Questions.
• Ensure that you submit assessments on or before the due date.
• Always retain a copy of your assessment tasks. (hard copy and soft copy)
• When you submit work for assessment at RMIT University you need to use a cover sheet that includes a declaration and statement of authorship. You must complete, sign and submit a cover sheet with all work you submit for assessment, whether individual or group work. On the cover sheet you declare that the work you are presenting for assessment is your own work. An assignment cover sheet for submission of each assessment task is available on blackboard.
• Each page of your assessment should include footer with your name, student number, the title of the assessment, unit code and title and page numbers. For example, Callie Harvey, 324567, Task 2, OHS2345C Ensure safe workplace, Page 1 of 10.
Late Submission Procedures
You are required to submit assessment items and/or ensure performance based assessment is completed by the due dates.
If you are prevented from submitting an assessment item on time, by circumstances outside your control, you may apply in advance to your teacher for an extension to the due date of up to seven calendar days. <check links are still current>
More Information: http://www.rmit.edu.au/students/assessment/extension
Form to use: http://mams.rmit.edu.au/seca86tti4g4z.pdf
Where an extension of greater than seven days is needed, you must apply for special consideration. Applications for special consideration must be submitted no later than two working days after the assessment task deadline or scheduled examination. <check links are still current>
More Information: http://www.rmit.edu.au/browse;ID=g43abm17hc9w
Form to use: http://mams.rmit.edu.au/8a5dgcaqvaes1.pdf
Course Overview: Access Course Overview