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

Part B: Course Detail

Teaching Period: Term1 2020

Course Code: ECON5050C

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

School: 650T Vocational Business Education

Campus: City Campus

Program: C6163 - Advanced Diploma of Accounting

Course Contact: Doug Gourlay

Course Contact Phone: +61 3 9925 5944

Course Contact Email:

Name and Contact Details of All Other Relevant Staff

Anthony Di Stasio

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


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.


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

National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

FNSINC601 Apply economic principles to work in the financial services industry


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


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


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


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

This Advanced Diploma unit is taught face-to-face in a classroom setting with some structured online components. The online components will require you to actively participate in a teacher led e-learning environment through the use of discussion boards, online quizzes and action learning activities.

RMIT offers a variety of learning and teaching approaches including group discussions, tutorials, workplace simulated projects, online quizzes, role plays and case studies.

We expect you to participate and contribute in all scheduled learning activities

Teaching Schedule



Readings and Activities




Introduction to course schedules

Introduction to Economics

Reading: Links provided in weekly module

Review Questions




Macroeconomic Principles

Review Questions




Macroeconomic Principles

Review Questions




Firms & Market Structures

 Review Questions




Macroeconomic Factors

Review Questions

Assessment 1 Due



Fiscal & Monetary Policy


 Review Questions



The Balance of Payments & Exchange Rates

Review Questions



The Balance of Payments & Exchange Rates





Review Questions






Review Questions

Assessment 2 Due



Economic Theory

Review Questions




Superannuation Regulation and Capital Adequacy


Review Questions




Complete Portfolio's In class

 In class exercises





Complete Portfolio's In class

 In class exercises

Assessment 3 Due



Re submissions

Re submissions

Re submissions


Learning Resources

Prescribed Texts


Other Resources

Overview of Assessment

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.


Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

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 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.


Assessors must satisfy NVR/AQTF assessor requirements.

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 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

You will demonstrate competency by undertaking three assessments.The assessments for this course have been designed to allow you to apply your learning to particular workplace scenarios and demonstrate your competence in a variety of ways.

There are three (3) assessments.

1. General Economic Principles - Due Week 5

2. Evaluating Economic performance - Due Week 11

3. Review & Maintain - Due Week 15


Assessment Matrix

The assessment matrix that maps all the assessment is available on CANVAS under Assignments.

All assessments will utilise a competency-based model and will be deemed as either Satisfactory or Not Yet Satisfactory. 

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 the Assessment task document that includes a declaration and statement of authorship.
  • 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.

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.

More Information:

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 five working days after the assessment task deadline or scheduled examination.

More Information:


Re-submissions (VE Programs):

If you are found to be unsuccessful (Not satisfactory/Unsatisfactory) in a Course Assessment Task you will be allowed one resubmission. Your teacher will provide feedback regarding what you need to do to improve and will set a new deadline for the resubmission. 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:




Final Results

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. The following grades are available for this course:

CA Competency Achieved

NYC Not Yet Competent

DNS Did Not Submit for Assessment

Course Overview: Access Course Overview