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: ben.sethia@rmit.edu.au


Name and Contact Details of All Other Relevant Staff

Anthony Di Stasio

anthony.distasio@rmit.edu.au

 

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

None

Course Description

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

Element:

1. Apply economic principles and theories

Performance Criteria:

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

Element:

2. Evaluate economic aspects that apply to decision making

Performance Criteria:

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

Element:

3. Review own work

Performance Criteria:

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

Element:

4. Maintain personal understanding of economic policies

Performance Criteria:

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


Learning Outcomes



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.


Teaching Schedule

 

WeekWeek CommencingTopics                                                            Assessment   
 1 4/7/16

Introduction to the course including:

  • Course requirements and support documents/resources
  • Course Blackboard access
  • Accuracy of enrolment
  • Assessment requirements/Cover Sheets
  • Reminder re Plagiarism/Appeals
  • Extensions/Resubmissions
  • Feedback in this course
  • Getting help
Relevance of Economics to Accounting
 
 211/7 /16 Introduction to Economics Online Test 5%
 318/7/16

 Micro economic

Principles

 
 425/7/16 Micro economic Principles Online Test 5%
 51/8/16Market Failure Online Test 5%
 68/8/16 Firms & Market Structures 
 715/8/16Macroeconomic Factors Online Test 5%
 822/8/16 Macroeconomic Factors Online Test 5%
   Term Break 23 August-4 September 
   
 95/9/16 Fiscal & Monetary Policy 
1012/9/16 Fiscal & Monetary Policy Online Test 5%
 1119/9/16The Balance of Payments & Exchange Rates 
 1226/9/16The Balance of Payments & Exchange Rates Online Test 5%
 133/10/16Economic Theory

Online Test 5%

 Assessment 2 Research Assignment Due
 1410/10/16 Revision 
1517/10/16 Test Assessment 3 Final Exam 50%
 1624/10/16 Resits 

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.

 

 

 


Learning Resources

Prescribed Texts


References


Other Resources

Compulsory Text

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:

Performance Evidence

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
     

Knowledge Evidence

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 Conditions

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

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. 


Assessment Tasks

 

Overview

 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.

 

Assessment Task/Titles: 

Assessments

 

  1. 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.

  2.  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

    http://www.abs.gov.au/

    http://www.rba.gov.au/

    http://www.budget.gov.au/

     

    (5) Internet Research Interest Rate Decisions

    Go to http://www.rba.gov.au/

    Refer to

    http://www.rba.gov.au/statistics/cash-rate.html

    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.

     

     

 


Assessment Matrix

Other Information

 

Submission Requirements

You should:

• 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