Course Title: Price financial transactions

Part B: Course Detail

Teaching Period: Term2 2009

Course Code: ACCT5284C

Course Title: Price financial transactions

School: 650T TAFE Business

Campus: City Campus

Program: C5205 - Diploma of 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

Arie Herrnstadt
Phone: 03 9925 5897
Fax: 03 9925 5986
arie.herrnstadt@rmit.edu.au / a.herrnstadt@rmit.edu.au

Clem Simonetto
Phone: 03 9925 5426
Clem.simonetto@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

There are no pre-requisites and co-requisites.

Course Description

This unit of competency covers the skills and knowledge required to research and analyse market information to determine the price of financial products. It will provide students with an understanding of the macroeconomic environment and enable them to identify and explain movements in aggregate economic variables and their effects upon the price of financial products. This includes an examination of government monetary, fiscal and external policy.

If you are undertaking this course in Melbourne from semester 2, 2012 onwards your teacher will advise you if you require access to a computer for the course. It is recommended that you have access to a mobile computing device to allow greater flexibility in terms of where you can work on campus outside class times.


National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

FNSFMKT601B Price financial transactions

Element:

FNSFMKT601B /01 Compile financial information and data

Performance Criteria:

1.1 Sources of financial data relating to financial products and financial markets are identified for analysis purposes
1.2 Relevant financial data on financial products and financial markets is collected according to organisational practices
1.3 Financial data is analysed to evaluate current market position and review data against the financial products

Element:

FNSFMKT601B /03 Record financial transaction

Performance Criteria:

2.1 Financial products are analysed utilising standard financial market investment concepts, against evaluated financial market data
2.2 Evaluated financial product data is reviewed against the current market position of the financial product
2.3 Financial market product price is reviewed against client requirements and credit rating
2.4 Financial transaction price is formulated using standard organisational practices
2.5 Client is advised of financial transaction price in accordance with organisational guidelines

Element:

FNSFMKT601B/02 Analyse and make prices

Performance Criteria:

3.1 Client acceptance of financial transaction price is confirmed according to organisation requirements
3.2 Relevant organisational transaction documentation is completed as necessary
3.3 All transaction details are entered into organizational dealing systems


Learning Outcomes


Refer to Performance Elements listed in Part A and the Performance Criteria in Part B.

Additionally this unit incorporates Knowledge requirements:
• knowledge of financial market products
• the economic environment, including:
• characteristics and impacts of economic and business cycles
• government monetary and fiscal policies
• interest rates, exchange rates, inflation
• knowledge of financial markets operating software systems
• understanding of risk and implications of financial positions
• understanding of mathematical principals and methodologies

 


Details of Learning Activities

To achieve the learning outcomes of the course students are required to participate in the learning activities listed below:

• Attendance at and note taking during teacher directed learning (scheduled lectures);
• Reading of and note taking from the prescribed textbook and other references;
• Completion of tutorial exercises prior to each workshop. Tutorial exercises consist of practical problems, short answer questions, multiple choice, case studies and extension exercises;
• Attendance, participation and discussion in class (tutorials);
• Optional consultation with academic staff;
• Completion of three (3) assessment tasks as indicated below.


Teaching Schedule

Week beginning 
Week 1

Basic Economics concepts, Discussion of the Course guide

Week 2Circular flow of income 
Week 3GDP and the business cycle
Week 4Aggregate demand 
Week 5Unemployment.  Assignment (30% distributed); assignment is due in week 14
Week 6Inflation
Week 7Macroeconomic Management
Week 8 Class Test 1 (20%)
Week 9Discussion of Test 1 and Assignment
Week 10The AFS, Money and level of economic activity
Week 11Monetary policy
Week 12Fiscal policy
Week 13Fiscal policy 
Week 14International Trade. Assignment (30%) due
Week 15Balance of Payments and Exchange rates
Week 16Revision
Week 17Final Class Test (50%)


Learning Resources

Prescribed Texts

Recommended Text
Jackson, J., McIvor, R., McConnell, C., and Brue, S, Macroeconomics, 6th Edition (McGraw-Hill Australia, Sydney, 2001)


References

Fraser I, Fraser S, Gionea J (2005) Economics for Business 3rd Ed. McGraw Hill-Australia, Sydney


Other Resources

Print based resources
Students will be provided with a course guide that will outline topics and their objectives together with timelines. In addition students have access to online resources including lecture notes, overheads, tutorial questions, solutions to tutorial questions for each topic and samples of past assessment.


Overview of Assessment

Assessment tasks will include the following:
1. Mid-Semester and Final Test . These will consist of short answer questions, problem solving case-studies and multiple-choice questions.
2. A group assignment that will focus on your ability to identify macroeconomic factors that impact on the value of a financial transaction. It will demonstrate the student’s ability to identiify and analyse the factors that determine the price of a financial transaction covered in the course such as a share and / or financial security (bond).

Students are advised that they are likely to be asked to personally demonstrate their assessment work to their teacher to ensure that the relevant competency standards are being met. Students will be provided with feedback throughout the course to check their progress.


Assessment Tasks

Students will be provided with more than one opportunity to demonstrate competence. Competency based assessment is detailed below.

Assessment Tasks
A class test & final class test

They will include a combination of multiple choice, short answer questions and extended answer questions.
Test 1 – in week 8   Value - 20%
Final Class Test in week 17  Value - 50%

Assessment Task
Assignment This will be a group assignment with a maximum of three members. It will include a combination of basic research questions and questions that analyse, evaluate and reinforce learning outcomes. The assignment will assess the performance criteria of the course.

Note that ALL members of an assignment group may have to answer questions about any part of their assignment, or to show their contribution, to validate their competency and to determine their marks. Assignment – distributed in week 4. It is due in week 14

To be deemed competent in this course, students must pass all performance elements. Additionally, students will be graded in this course. The grade will be determined on the overall mark attained and will be based on the grade criteria listed below.

Graded results will apply the following
Grade HD Mark > = 80 Description High Distinction
Grade DI Mark 70 - 79 Description Distinction
Grade CR Mark 60 - 69 Description Credit
Grade PA Mark 50 - 59 Description Pass
Grade NN Mark 0 - 49 Description Fail
Grade NYC Mark Not Applicable Description Not Yet Competent
Grade DNS Mark Not Applicable Description Did Not Submit




Assessment Matrix

Performance Element


Class Test

Group AssignmentFinal Test
1. Compile financial information and data YY
2. Analyse and make prices  YY
3. Record financial transaction YY
Underpinning knowledge and skills (learning outcomes 1 – 6)YYY

Other Information

Assessment Criteria
The following links the assessment criteria to the topics covered in the course:

Topic
1. Illustrate and explain the circular flow macroeconomic model, the national income equilibrium and the factors that cause fluctuations in equilibrium.
Assessment activities
Test 1
Assignment
Assessment Criteria
• Identify the flows and markets in the basic circular flow of income model.
• Discuss how the modified circular flow of income model can explain fluctuations in economic activity and economic change.
• Define the main national accounts with particular reference to the Gross Domestic Product.
• Describe the measurement and construction of gross domestic product (GDP). Distinguish between nominal and real change in output.
• Identify and explain the components of aggregate demand. Discuss the main determinants of aggregate demand.
• Demonstrate equilibrium income using the AD-AS diagram.
• Outline comparative features of GDP size, growth and structure in East Asian economies

Topic
2. List and analyse the causes and effects of changes in the business cycle, and explain and illustrate the effect of demand on inflation and unemployment.
Assessment Activities
Test 1
Final Class Test
Assignment
Assessment Criteria
• Identify real GDP as an indicator of the business cycle. Identify and explain the features of the phases of the business cycle.
• Define unemployment and the unemployment rate.
• Discuss the types and causes of unemployment.
• Define inflation and explain its causes and consequences. Explain how inflation is measured in Australia

Topic
3. Explain the purpose and objectives of the financial system and discuss the nature and importance of its institutions, financial assets and markets.
Assessment Activities
Final Class Test
Assignment
Assessment Criteria
• Explain the role of the financial system in an economy.
• Explain the role of financial institutions, the central bank and the role of prudential regulation.
• Define the measures of the money supply.

Topic
4. Analyse the concept and purpose of economic management, and assess the effectiveness of fiscal and monetary policies.
Assessment Activities
Final Class Test
Assignment
Assessment Criteria
• Outline the objectives of macroeconomic management
• Discuss the objectives of monetary policy.
• Describe the roles of participating institutions and the route by which monetary policy affects the operation of the economy. Analyse the techniques of monetary policy.
• Discuss the effectiveness of monetary policy.
• Discuss the objectives of fiscal policy.
• Describe the roles of the budget in the implementation of fiscal policy. Discuss the effectiveness of fiscal policy.

Topic
5. Outline the reasons for trade between countries. Examine and discuss Australia’s trade and investment flows, the balance of payments, exchange rates and macroeconomic effects of foreign trade.
Assessment Activities
Final Class Test
Assessment Criteria
• Explain the reason for international trade and identify the benefits of trade using the concepts of absolute and comparative advantage.
• Define the balance of payments and identify its major components. Measure the balance of merchandise trade and the current account balance. Explain the causes and the effects of the Current Account Balance.
• Define exchange rates and identify how exchange rates are determined.
• Discuss the factors that impact on the value of exchange rate. Explain the economic impact of changes in the exchange rate.















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