Course Title: Price financial transactions

Part B: Course Detail

Teaching Period: Term1 2012

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
+61 3 9925 5897
arie.herrnstadt@rmit.edu.au

Contact by appointment

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:

1. 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:

2. Analyse and make prices

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:

3. Record financial transaction

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

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 via Blackboard to access weekly class notes, tutorial questions and case-studies and additional articles on contemporary events, and also includes bond calculator.
The collaborative classroom based activities will include group discussion, group problem solving.


Teaching Schedule

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 but also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities.

Week, starting                     Topic                                                                              ElementsAssessment                             
1 – Feb 6thBlackboard, course and assessment requirements
Where to get support, Student responsibilities.
Topic 1: Economic fundamentals
 1 
2 – Feb 13thEconomic fundamentals, introductory assessment task 1, 2 Task 1 due – Introductory assessment task – Part A of Assessment Task 2.
3 – Feb 20thTopic 2.1: Circular flow of income 1, 2 
4 – Feb 27thTopic 2.2: GDP and the Business Cycle 1, 2 
5 – March 5thTopic 2.3: Aggregate demand and economic fluctuations 1, 2 
6 – March 12thTopic 3: Unemployment and the labour market 1, 2 
7 – March 19thTopic 3: Inflation 1, 2 
8 – March 26thAssessment: Class test  Task 2 Due
Feedback in week 10. If required, resubmission for this in Week 16.
9 – April 2nd Topic 4.1 Money Supply and its impact on economic and business activity and cycles. 2, 3 
9 – April 9th Topic 4.1 Money Supply and its impact on economic and business activity and cycles. 2, 3 
10 – April 16th Topic 4.2 Monetary policy. Financial markets, financial products and investment including securities/bonds; financial transactions.2, 3 
11 – April 23rdTopic 4.2 Monetary policy continued.2, 3 
12 – April 30thTopic 5. Fiscal policy, Part 1.1-3 
13 – May 7thTopic 5. Fiscal policy, Part 2. 1-3 
14 – May 14thIndividual assignment  
15 – May 21st   Task 3 Due
Feedback in week 16. If required, resubmission for this due by Friday 8 June.
16 – May 28th Feedback, re-sit class test.  


Learning Resources

Prescribed Texts


References

Di Stasio & Georgeson, Apply Economic Principles to work in the financial service industry, Better Teams Publications

9781921579219

Layton, Robinson & Tucker, Economics for Today, 3rd edition, Cengage Learning

9780170137089


Other Resources

Learning support materials are made available on the Online Learning Hub www.rmit.edu.au/online. Access to an Internet connected computer outside of class times – Internet connected computers are available in the Business Portfolio labs on Level 3 of Building 108, 239 Bourke Street Melbourne.


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

You are required to complete 3 tasks. You must successfully complete all 3 tasks to be deemed competent in this unit.

TASK 1 (Due Date: End of week 2)

Introductory assessment task. This assessment will consist of a practical case-study requiring you to complete economic based calculations on the performance of an economy and to identify and briefly describe the change in economic experienced by the economy and the factors causing this change.

To be deemed competent in this task you must accurately complete the calculations required and to identify and briefly describe the changes in economic activity and the factors causing this change.

TASK 2 (Due Date: Week 8)

Class Test. The test will assess required knowledge and skills of this unit.
It will consist of problem solving exercises and two case-studies that will require you to apply the content covered in class to economic data.

To be deemed competent in this task you must:
- accurately complete the problem solving questions;
- identify macroeconomic factors relevant to the case-studies presented;
- accurately describe the state of the economy and the main factors causing this change in the case-studies presented.

TASK 3 (Due Date: End of Week 15)

An individual assignment requiring you to apply macroeconomic analysis to current economic events and will include an exercise requiring you to accurately price a financial product by using a bond calculator.

To be deemed competent in this task you must:
- accurately identify and describe macroeconomic factors;
- identify and briefly describe economic relationships between GDP, interest rates and inflation;
- provide advice to a client on opportunities and risks involved in investing in shares, bonds and cash;
- accurately use the bond calculator to calculate bond prices and yields.


Assessment Matrix

Other Information

Submission Requirements

You should:
Ensure that you submit assessments on or before the due date. If your performance in the assessment is affected by unexpected circumstances, you should consider applying for Special Consideration. Information on the process and application forms is available at http://rmit.edu.au/browse;ID=ls0ydfokry9rz website.

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 work for assessment 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, Lowly Interest, 1234567, Task 2, ACCT5323C Develop & maintain knowledge of products, Page 1 of 10.


Marking Guide (competency):

Vocational Education and Training (VET) is based on current industry needs and the focus on preparing you for the workplace. Because VET courses are informed by practical application of knowledge and skills, they are based on a system known as ‘competency based training’ (CBT). So when you are assessed in VET it is about whether you are competent to do the job, as well as having a firm grasp on the knowledge and skills required to do that job, as opposed to traditional curriculum based education settings that are often based on knowledge retention.

You need to demonstrate you are competent in each element of the unit of competency you are studying.

You will receive feedback on each assessment task that will inform you whether you are competent or not and how well you are performing. Once competent in all elements of the unit you receive a competency grading.

Please refer to the Final Grades table below.

Marking Guide (Grading)

After achieving competency we then grade your performance in the unit; this gives you the opportunity to have the level of your performance formally recognized against industry standards and employability skills.

The grading is according to the following criteria:

LEVEL OF INDEPENDENCE, INITIATIVE, ENTERPRISE AND PERFORMANCE OF WORK TASK

You are required to demonstrate a high level of ability to complete all tasks independently as per the specifications as well as demonstrating a high level of initiative in your access of information required for the assessments tasks, accuracy and quality of information presented to the client and appropriate recommendation using the information you have access, analysed and presented.

DEMONSTRATED BREADTH OF UNDERPINNING KNOWLEDGE AND A WILLINGNESS TO CONTINUE LEARNING

You need to show a depth of understanding of the key concepts and knowledge of the economic environment, including:
• characteristics and impacts of economic and business cycles
• government monetary and fiscal policies
• interest rates, exchange rates, inflation

TECHNIQUES & PROCESSES, TECHNOLOGY SKILLS AND PROBLEM SOLVING

Demonstration of appropriate use of technology to assist in presenting all tasks clearly and suitable for the intended audience, including the accurate use of the use of the bond calculator to calculate bond prices and yields. This will also require the use of macroeconomic concepts to understand the risk and implications of investment stratgeies and decisions.

WORK ORGANISATION, PLANNING AND SELF MANAGEMENT

You must complete all work as per course requirements and timely submission of all required assessment tasks. You need to collate data and organize it in a presentable format that meets the requirements of the assessment tasks.

COMMUNICATION, PEOPLE NETWORKING, LANGUAGE AND INTERPERSONAL SKILLS AND TEAMWORK

Your written responses to assessment tasks need to be clear and concise. Where appropriate you are required to seek feedback from teaching staff to clarify assessment requirements and to participate in class activities and ask questions to clarify economic and financial terms.

Final Grades table:

CHD Competent with High Distinction
CDI Competent with Distinction
CC Competent with Credit
CAG Competency Achieved – Graded
NYC Not Yet Competent
DNS Did Not Submit for assessment

Further information regarding the application of the grading criteria will be provided by your teacher.

Course Overview: Access Course Overview