Course Title: Apply economic principles to work in the financial services industry

Part B: Course Detail

Teaching Period: Term2 2015

Course Code: ECON5049C

Course Title: Apply economic principles to work in the financial services industry

School: 650T Vocational Business Education

Campus: City Campus

Program: C6113 - Advanced Diploma of Accounting

Course Contact : Arie Herrnstadt

Course Contact Phone: +61 3 9925 5897

Course Contact Email:arie.herrnstadt@rmit.edu.au


Name and Contact Details of All Other Relevant Staff

Name and contact details of other staff
Bruce Phillips, bruce.phillips@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 performance outcomes, 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.

No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.

Ideally each student group should have access to a laptop. It is however recommended that you have access to a mobile computing device to allow greater flexibility in terms of where you can work on campus both in and outside class times.

 


National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

FNSINC601A Apply economic principles to work in the financial services industry

Element:

1. Identify economic principles and theories related to financial services functions and tasks
 

Performance Criteria:

1.1 Knowledge of economic principles that apply to the industry is developed and applied
1.2 Microeconomic theory of markets and how this influences financial products and services is understood
1.3 Capital adequacy regulation and requirements as they apply to work functions are accessed and considered.

Element:

2. Evaluate economic aspects that apply to decision making

Performance Criteria:

2.1 Relevant financial modelling techniques are applied to economic data to inform decision making
2.2 Appropriate asset pricing models and their application are known and used
2.3 Models of determining organisational value in relation to capital structure are applied.

Element:

3. Review own work

Performance Criteria:

3.1 Own work is evaluated in the context of relevant economic principles
3.2 Ways to improve performance through understanding of how economics applies to own decision making are considered.

Element:

4. Maintain a personal understanding of economic policies

Performance Criteria:

4.1 Current economic theories and their impact on the industry are researched to ensure relevant knowledge is current
4.2 Contemporary economic principles are integrated into work practices.

Learning Outcomes


Learning Activities
In-class activities will account for 51 of the 60 nominal hours allocated to this course and will include lectures, tutorial exercises and class discussion. The remaining 9 hours of self-directed learning will be taken up with work on the assignment outside scheduled class.


Details of Learning Activities

In-class activities will account for 51 of the 60 nominal hours allocated to this course and will include lectures, tutorial exercises and class discussion. The remaining 9 hours of self-directed learning will be taken up with work on the assignment outside scheduled class.


Teaching Schedule

Students are expected to check their student email and myRMIT online at least weekly for messages. If absent from class you are also responsible for keeping up with any changes and for downloading, reading notes and completing class exercises that you have missed.

Students are expected to either bring a computer to class to access the course notes and exercises for each topic, or to print the relevant notes and exercises before coming to class so that class time is effectively used. To enable you to print the course material before attending class, the notes and exercises will become available on the myRMIT Blackboard site the week before starting each new topic.

During each class you will be directed which exercises to complete. These exercises will be in the form of multiple choice questions, case studies, short and longer answer questions.

The nominal hours and topic sequence below is 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.

Full time and part time students please note:

1.  There may be a slight variation in topic or assessment timing as deemed necessary by your teacher.
2.  Due to time limitations during classes you are expected to follow and reinforce up class topics with supplemetary exercises, as well as check your answers, in your own time.
3.  The exercises specified are the minimum deemed necessary to support your learning. Other exercises are available to further assist your learning, or may also be given.

WEEKLY SCHEDULE for FULL TIME day students

Week Commencing Weekly topics Elements Assessment Relevant topic exercises
1 6 July Economics: relevance to accountants                                                                                                               1, 2   Topic 1 Exercises                                             
2 13 July Effect of demand factors on prices 1, 2   Topic 2 Demand Exercises Exs 1,2,4-7
3 20 July Effect of supply factors on prices 1, 2  

Tut 3 Supply Exs 1,2,4
4 27 July Price equilibrium, demand and supply 1, 3   Topic 4 Equilibrium Price Qs Exs 1,3,4
5 3 August Effect of simultaneous Demand and Supply changes 1, 3 Task 1 Phase 1, feedback by 21 August

Topic 4 Equilibrium Price Qs Exs 1,3,4
6 10 August Effect of market structures and competition on pricing 2   Topic 5 Market Structures Part 2 Ex 3,4. 
7 17 August Factors determining macroeconomic activity: circular flow of income. 2  

Topic 6 Circular Flow MCQ 11, Applied Qs 2,3,4.
8 24 August Measuring economic activity for decision making: the business cycle 2   Topic 7 Agg Demand/ Nominal GDP Applied Exs 1-4.
  31 Aug-
4 Sept		 MID SEMESTER BREAK      
9 7 September Business cycle phases and their distinguishing features 2,3 Task 1 Phase 2, feedback by 25 Sept Topic 8 Business cycle features notes, Tut Qs 1-8
10 14 September Australian financial industry: regulations and capital requirements. Reducing business cycle fluctuations using monetary policy. 1,2   Tut 9 Financial system Part 1 on Reg authorities and gen financial system MCQs 1-10
11 21 September Reducing business cycle fluctuations using monetary policy. 1,2,4 Task 2 appointments from Week 11, feedback at interview close

Tut 9 Financial system and monetary policy (Part 2 on Monetary Policy) Qs 1-10
12 28 September Reducing business cycle fluctuations using fiscal policy. 1,2,4  

Topic 10 Fiscal policy Exs 1,2, Applied Exs 1-5 all MCQs 1-12
13 5 October Balance of Payments, Exchange Rates and Revision 1-4 Task 1 Phase 3, feedback by 19 October

Revision exercises
14 12 October Revision  1-4    Revision exercises
 
15 19 October Test   Task 3 Test, feedback by following class  
16 26 October Feedback, retests during Week 17 if necessary.      

Please note that this schedule is a guide only and may be changed as necessary by your teacher. Absent students are responsible for finding out what changes have been made in the course during their absence.


Course Delivery: Part time evening classes during 14 teaching and two non-teaching weeks
 

<thead> <th scope="col">Week</th> <th scope="col">Commencing</th> <th scope="col">Weekly topics</th> <th scope="col">Elements</th> <th scope="col">Assessment</th> <th scope="col">Relevant topic exercises</th> </thead>
1 6 July  Economics: relevance to accountants    1, 2    Topic 1 Exercises
2 13 July  Effect of demand factors on prices  1, 2    Topic 2 Demand Exercises Exs 1,2,4-7
3 20 July  Effect of supply factors on prices  1, 2    Tut 3 Supply Exs 1,2,4
 
4 27 July  Price equilibrium, demand and supply  1, 3    Topic 4 Equilibrium Price Qs Exs 1,3,4
5 3 August  Effect of simultaneous Demand and Supply changes  1, 3 Task 1 Phase 1, feedback by 21 August  Topic 4 Equilibrium Price Qs Exs 1,3,4
6 Non-teaching week  Effect of market structures and competition on pricing  2    Topic 5 Market Structures Part 2 Ex 3,4.
7 17 August  Factors determining macroeconomic activity: circular flow of income.  2    Topic 6 Circular Flow MCQ 11, Applied Qs 2,3,4.
 
8 24 August  Measuring economic activity for decision making: the business cycle  2    Topic 7 Agg Demand/ Nominal GDP Applied Exs 1-4.
  31 Aug-
4 Sept		  MID SEMESTER BREAK      
9 Non-teaching week  Business cycle phases and their distinguishing features  2,3 Task 1 Phase 2, feedback by 25 Sept  Topic 8 Business cycle features notes, Tut Qs 1-8
10  14 September  Australian financial industry: regulations and capital requirements. Reducing business cycle fluctuations using monetary policy.  1,2    Tut 9 Financial system Part 1 on Regulatory authorities and gen financial system MCQs 1-10
11  21 September  Reducing business cycle fluctuations using monetary policy.  1,2,4 Task 2 appointments from Week 11, feedback at interview close  Tut 9 Financial system and monetary policy (Part 2 on Monetary Policy) Qs 1-10
 
12  28 September  Reducing business cycle fluctuations using fiscal policy. Balance of Payments and Exchange Rates.  1,2,4    Topic 10 Fiscal policy Exs 1,2, Applied Exs 1-5 all MCQs 1-12
 
13  5 October  Balance of Payments, Exchange Rates and Revision  1-4 Task 1 Phase 3, feedback by 19 October  
14  12 October Revision  1-4    
15  19 October  Test   Task 3 Test, feedback by following class  
16  26 October Feedback, retest during Week 17 if necessary      

Please note that this schedule is a guide and may be changed as deemed necessary by your teacher. Absent students are responsible for finding out what changes have been made in the course during their absence.
 


Learning Resources

Prescribed Texts


References

Anthoy Di Stasio & Costa Georgensen, Apply Economic Principles to work in the financial services industry, Edition 2, Better Teams Publications, 2012

9781921579547

Layton, Robinson & Tucker, Economics for Today, Cengage Learning


Other Resources

Course website on Blackboard

Newspapers and media articles and programs

Relevant websites


Overview of Assessment

Assessment may incorporate a variety of methods including technical requirements documentation, homework, assignments, group and/or individual projects, in class exercises, written and practical tests, problem solving exercises, presentations, direct observation of actual and simulated work practice, presentation of a portfolio of evidence which may comprise documents, and/or photographs and/or video and audio files, review of products produced through work-based or course activities.

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

Task 1 Individual Assignment Phases Weeks 5, 9 and 13.
The assignment scenario is that the student will inherit $10,000 provided they will invest this money. Students are required to use this $10,000 to purchase shares in a public company of their choice. They must then determine the share’s profitability, track the share price and explain changes in the profitability due to micro and macroeconomic factors.
The assignment is to be submitted in three phases as more topics are covered during class.


Task 2 Client consultation simulation from Week 11
Students in pairs or groups of up to four will demonstrate that they can listen to, clarify and answer customers’ questions about economic conditions underlying the performance of the company they researched in Task 1.Further details will be provided to students.


Task 3 Short answer test Week 15
This is a closed book test which will cover both micro and macroeconomics, assessing both underlying knowledge and application of theory. Maximum duration of test 2 hours.


Assessment Matrix

Course Overview: Access Course Overview