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

Part B: Course Detail

Teaching Period: Term1 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

Course Coordinator

Arie Herrnstadt, 9925 5897

arie.herrnstadt@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

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

Induction Session


Prior to training commencement a program level induction session will be conducted that comprises the following:

  • Program overview and requirements
  • MyRMIT/Blackboard
  • Overview of assessment requirements
  • Pre-Training Review including:
    • Recognition of Prior Learning and Credit Transfers
    • Assessment of current skills and knowledge
  • Competency/Grading Criteria
  • Plagiarism
  • Appeals
  • Extensions
  • Feedback
  • Privacy
  • Submission requirements
  • Resubmission policy
  • Where to get support
  • Student responsibilities 

 The Teaching Schedule for this course is as follows but please note that it is subject to change.

     Week Week CommencingTopics                                                             Assessment   
 1 08/02/16Introduction, Relevance of economics to accountants, asset valuation 
 2 150/2/16 Prices and quantity of sales: demand factors 
 3 22/02/16 Prices and quantity of sales: supply factors 
 4 29/02/16 Price equilibrium, based on constant demand and supply 
 5 07/03/16 Effects of changed demand and supply on price equilibrium Task 1 Phase 1, Feedback by Week 7
 6 14/03/16 Structural factors that affect prices and industry behaviour 
 7a 21/03/16 Factors determining macroeconomic activity: circular flow of income 
  24/03/16 - 30/03/2016 - Mid Semester Break 
 7b 28/03/16 Factors determining macroeconomic activity: circular flow of income 
 804/04/16 Measuring economic activity for decision making: the business cycle 
 911/04/16 Business cycle phases and their distinguishing features Task 1 Phase 2 due Feedback by Week 12
1018/04/16 Australian financial industry: regulations and capital requirements, Counter-cyclical policies: monetary policy 
 1125/04/16 Counter-cyclical policies: monetary policy 
 1202/05/16 Counter-cyclical policies: fiscal policy 
 1309/05/16 Balance of Payments and Exchange Rates Task 1 Phase 3, feedback during Week 14
 1416/05/16 Revision 
1523/05/16 Test Task 2 Supervised Test
 1630/05/16 Feedback 

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

Di Stasio & Georgeson (2016) Apply Economic Principles to Work in the Financial Services Industry, 3rd Edn, Better Teams Publications Layton, Robinson & Tucker, Economics for Today, Cengage Learning Fraser, Gionea, Fraser, Econics for Business, McGraw Hill


Other Resources


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 of Assessment
The purpose of the assessments for this course is to make students aware of how economic and other developments will affect the profitability of the organisations that they work for or for which as take the role as a business adviser.

There are two modes of assessment used. The first is an assignment to be consecutively completed in three phases. Each phase enables students to apply aspects of the theory covered to analyse the performance of their chosen company. Students who have not shown competency in applying the theory in each phase will be given feedback and one chance to resubmit the phase, except for Phase 3.

Because students need to show their own competency without external aid, regardless of the assignment result, the hurdle requirement for this course will be Task 2, the supervised test. Provided students show competency in this test, the assignment may be used to determine their final grade.
Critical Aspects of assessment

Evidence of the following is essential:

Ability to understand how various economic theories and developments affect businesses and the decisions that business leaders make.

The assessments for this course have been designed to allow participants  apply their learning to particular simulated work scenarios and demonstrate their competence in a variety of ways.

Task 1 Individual Assignment
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 electronically via Turnitin on Blackboard in three phases as more topics are covered during class. Phase 1: due 11 March 2016,

Phase 2 due 15 April,

Phase 3 due 13 May 2016

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

You must successfully complete all assessment tasks to achieve competency.


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


Resubmissions (VET Programs):


If you are found to be unsuccessful in a Course Assessment Task you will be allowed one resubmission only. Your teacher will provide feedback regarding what you need to do to improve and will set a new deadline for the resubmission. The highest grade you will receive if your resubmission is successful is “CAG”.


If you are still not meeting the assessment requirements you must apply to your Program Manager in writing outlining the steps you will take to demonstrate competence in your course. Your submission will be considered by the Program Team and you will be advised of the outcome as soon as possible.


Adjustments to Assessment


In certain circumstances students may be eligible for an assessment adjustment. For more information about the circumstances under which the assessment arrangements might be granted please access the following website: <check link is still current>
More Information: http://rmit.edu.au/browse;ID=7usdbki1fjf31

Marking Guide (Competency):

You must demonstrate that you have all the required skills/knowledge/elements in the unit of competency you are studying.

You will receive feedback on each assessment task that will inform you about your progress and how well you are performing.


Marking Guide (Grading)

After achieving competency we then grade your performance in the unit and you will achieve one of the following grades:

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