Course Title: Facilitate customer awareness of the Australian financial system and markets

Part B: Course Detail

Teaching Period: Term1 2007

Course Code: ACCT5213C

Course Title: Facilitate customer awareness of the Australian financial system and markets

School: 650T TAFE Business

Campus: City Campus

Program: C4170 - Certificate IV in Financial Services

Course Contact : Clem Simonetto

Course Contact Phone: +61 3 9925 5426

Course Contact Email:clem.simonetto@rmit.edu.au


Name and Contact Details of All Other Relevant Staff

Mel Criscione

+61 3 9925 1344

mel.criscione@rmit.edu.au

Nominal Hours: 40

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 covers the skills and knowledge to develop client awareness of how the monetary and financial systems and markets operate in Australia, with the aim of enhancing basic consumer financial literacy. It also enables learners to develop knowledge of the nature and role of financial institutions and markets within the Australian financial system.


National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

FNSFLIT502A Facilitate customer awareness of the Australian financial system and markets

Element:

Explain to clients, the function and role of the Reserve Bank of Australia (RBA)

Performance Criteria:

• The role of the RBA as Australia's central bank is explained to the client
• Differences between the RBA and other banking institutions is communicated to the client
• The importance and effect of the RBA's monetary policy on the Australian economy is communicated to the client in plain language
• The effect of RBA actions on the consumer's personal finances is explained to the client in plain language
• The role of the bank in maintaining financial stability and regulating the Australian Payments System is explained to the client

Element:

Outline the main features of the Australian financial markets

Performance Criteria:

• The purpose of financial markets is explained to the client
• The major markets within the Australian financial markets are identified and communicated to the client
• The role of banks and financial institutions as financial intermediaries is discussed with client
• The role and function of the short term money market and types of products it deals in, are outlined in basic language for the client

Element:

Outline the role of money and Australia's monetary base

Performance Criteria:

• Society's motivations for holding money are identified and discussed with the client
• The various functions of money are discussed with the client
• The impact of changes in the supply of money is explained to the client in plain language

Element:

Provide information to the client about regulation of the financial system

Performance Criteria:

• The role of independent regulation in the financial system is explained to the client
• The main regulators of the financial system are identified and their roles discussed with the client
• Examples of the protection afforded individuals by the regulators are provided to the client


Learning Outcomes


Refer to performance elements and performance criteria.


Details of Learning Activities

In this course students will undertake a range of learning activities, which will include:
An initial introduction to topics and techniques via teacher directed learning, tutorial-based discussion groups, role-plays to explore individual reactions to particular situations, a group project (case-study) and tutorial exercises in order to develop competency including underpinning skills and knowledge.


Teaching Schedule

Week beginningTopicsTutorial/class work
Week 1 – 12 FebIntroduction
 money
 the money supply
Crane, chapter 2
Week 2 – 19 Feb money and the level of economic activity
 the quantity theory of exchange
 the credit creation process
Crane, chapter 2
Week 3 – 26 FebThe AFS
 overview of the AFS
 structure of the AFS
 functions of the AFS
Crane, chapters 3 – 5

Viney, chapters 1-3
Week 4 – 5 Mar an overview of deregulation of the AFS
 recent major changes relating to the AFS
Crane, chapters 3 – 5
Viney, chapters 1-3
Week 5 – 12 MarClass Test 
Week 6 – 19 MarMonetary Policy and Prudential Supervision
 the role and function of the RBA
 the conduct of monetary policy
Crane, chapter 2
Viney, chapter 13
Week 7 – 26 MarMonetary Policy and Prudential Supervision
 the role and function of the RBA
 the conduct of monetary policy
Crane, chapter 2
Viney, chapter 13
Week 8 – 2 April the role and Function of APRA
 prudential controls used by APRA
Crane, chapter 2
Viney, chapter 13
 Mid Semester Break (Student Vacation) – 5th to 11th April 
Week 8 – 2 April the role and Function of APRA
 prudential controls used by APRA
Crane, chapter 2
Viney, chapter 13
Week 9 – 16 AprilFinancial Markets
 Equity markets
 Corporate debt markets
 Government debt markets
Crane, chapter 6
Viney, chapters 4, 5, 6, 8
Week 10 – 23 AprilEncompassing
 Short – medium term markets
 Long – term markets
Crane, chapter 6
Viney, chapters 4, 5, 6, 8
Week 11 – 30 April Primary and secondary markets
 Direct and indirect markets
Crane, chapter 6
Viney, chapters 4, 5, 6, 8
Week 12 – 7 MayAssignment due 
Week 13 – 14 MayFinancial Instruments ( within corporate and government debt markets)
 commercial bills
 debentures and unsecured notes
 fully drawn advances
 intercompany loans
 bank overdrafts
 term loans
 government securities
Crane, chapter 6
Viney, chapters 9 - 10
Week 14 – 21 MayFinancial Instruments ( within corporate and government debt markets)Crane, chapter 6
Viney, chapters 9 - 10
Week 15 – 28 MayFinancial Instruments ( within corporate and government debt markets) Crane, chapter 6
Viney, chapters 9 - 10
Week 16 – 4 JuneRevision 
Week 17 – 11 JuneFinal Class Test (50%) 
Week 18 – 18 JuneFeedback on Assessment, exam & assignment 


Learning Resources

Prescribed Texts

• Prescribed text
The prescribed text for this course is:
Crane, R., Fraser I and Martin, T., Financial Institutions, Markets and Instruments, 5th edition, (LBC Information Services, NSW, 2000).
You must have access to a copy of this text.


References

• References and Further Readings
A number of publications from which you can obtain more details information on the topics covered in this course:

McGrath, M. and Viney, C., Financial Institutions, Instruments and Markets In Australia, 1997, McGraw Hill

Lewis, M.K. and Wallace, R.H., (1997) The Australian Financial System Evolution, Policy and Practice, Longman

Fraser, I., et al (2005) Economics for Business, McGraw Hill

Jackson, J. et al (2003) Macroeconomics, McGraw Hill

Juttner, J. and Hawtrey (1997) Financial Markets, Money and Risk, Fourth Edition, Longman

Bruce, R., et al, Handbook of Australian Corporate Finance, Butterworths


Additional texts are available for general use from the Business library on level 5 of Building 108. A computer access laboratory is provided on level 3 and a library on level 5 of Building 108.


Other Resources

• Online resources
Students will be provided with online resources in the learning hub that includes course overheads and self-directed exercises, online feedback exercises and relevant url’s.


Overview of Assessment

Assessment may incorporate a variety of methods including written tests, a group assignment and final test.
The tests are closed book and consist of multiple choice, practical exercises and short answer questions. The group assignment requires students to research the role and function of a financial institution or a major contemporary issue relating to the financial system and of concern to consumers.

You will receive ongoing feedback on your progress in the course. Feedback on assessment will be given in a timely manner. You will be informed about how to improve your performance in the competency/course and what you need to do to be deemed competent or to gain a pass in the assessment.


Assessment Tasks

The assessment will consist of:

• A test worth 20% of the assessment for the course to be held after topic 2, in week 7.

• A group assignment worth 30% of the assessment. The assignment will require students to research the role and function of a financial institution or a major contemporary issue relating to the financial system and of concern to consumers. It will be due in week 12.

• A closed book test worth 50% of the assessment of the course. It will be held at the end of the course. It will assess the performance elements in addition to the underpinning skills and knowledge of the course.

The final mark is based on all assessment components. To receive a pass for this course a student must achieve 50% overall.



Assessment Matrix

 Class testGroup assignmentFinal Test
Explain to clients, the function and role of the Reserve Bank of Australia (RBA)  YY
Outline the role of money and Australia’s monetary base YYY
Outline the main features of the Australian financial markets YYY
Provide information to the client about regulation of the financial system  YY

Course Overview: Access Course Overview