Assessor Resource

FNSFLT205
Develop knowledge of the Australian financial system and markets

Assessment tool

Version 1.0
Issue Date: May 2024


This unit describes the skills and knowledge required to understand the financial systems and markets operating in Australia, including identifying the main participants in financial markets, the role of the central bank, the impact of its decisions on business and consumers, key factors that influence the Australian economy and the role of financial regulators. It has wide application and may be used in workplaces, schools, adult and community learning organisations or registered training organisations to build the financial literacy of learners. The unit may also be used as part of pre-vocational or new apprenticeship programs, or as part of services provided by counselling or advisory organisations.

It applies to individuals who research information to develop personal financial literacy knowledge and skills.

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

You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)


Evidence Required

List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Describe what is meant by Australian financial markets

1.1 Identify specific financial markets in Australia

1.2 Describe purpose of financial markets and when they emerged in Australia

1.3 Identify participants in financial markets and discuss roles of banks and financial institutions as financial intermediaries

2. Explain function and role of Reserve Bank of Australia (RBA)

2.1 Describe role of Reserve Bank of Australia (RBA) as Australia’s central bank and contrast with other banking institutions

2.2 Explain importance and effect of RBA’s monetary policy on Australian economy and everyday consumers

3. Explain Australia’s monetary system

3.1 Describe various functions of money and discuss society’s motivations for holding money

3.2 Describe the monetary cycle in the economy and on a global scale, and instruments traded on short-term money market

3.3 Explain impact of increases and decreases in money supply and importance of regulating money supply of any country

4. Explain key factors that influence the Australian economy

4.1 Describe role and impact of Commonwealth and state government actions on the economy with reference to current events and issues

4.2 Explain impact of change in domestic interest rates on different sectors of the economy

4.3 Discuss impact of changes in consumer activity on the Australian economy

5. Describe role of regulators

5.1 Identify main regulators of the financial system

5.2 Use examples to explain role of each regulator in protecting investors and consumers, and promoting confidence in the financial system

Evidence of the ability to:

clearly explain the features and roles of the participants in the Australian financial system and markets.

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

To complete the unit requirements safely and effectively, the individual must:

identify and describe relevant and current issues relating to the Australian financial system and markets, and the economic environment

list the different types of financial markets in Australia

explain the purpose of financial markets

describe the role of the Reserve Bank of Australia (RBA) and its monetary policy

list the main regulators and describe their roles

describe the different functions of money

describe the key functions of money

list instruments traded on the short-term money market

list different types of consumer activity in the financial system/markets.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the financial literacy field and include access to:

office equipment, technology, software and consumables

information about Australia’s financial system and other markets, basic economics and other relevant resources.

Assessors must satisfy NVR/AQTF assessor requirements.

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assingnment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)

Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Describe what is meant by Australian financial markets

1.1 Identify specific financial markets in Australia

1.2 Describe purpose of financial markets and when they emerged in Australia

1.3 Identify participants in financial markets and discuss roles of banks and financial institutions as financial intermediaries

2. Explain function and role of Reserve Bank of Australia (RBA)

2.1 Describe role of Reserve Bank of Australia (RBA) as Australia’s central bank and contrast with other banking institutions

2.2 Explain importance and effect of RBA’s monetary policy on Australian economy and everyday consumers

3. Explain Australia’s monetary system

3.1 Describe various functions of money and discuss society’s motivations for holding money

3.2 Describe the monetary cycle in the economy and on a global scale, and instruments traded on short-term money market

3.3 Explain impact of increases and decreases in money supply and importance of regulating money supply of any country

4. Explain key factors that influence the Australian economy

4.1 Describe role and impact of Commonwealth and state government actions on the economy with reference to current events and issues

4.2 Explain impact of change in domestic interest rates on different sectors of the economy

4.3 Discuss impact of changes in consumer activity on the Australian economy

5. Describe role of regulators

5.1 Identify main regulators of the financial system

5.2 Use examples to explain role of each regulator in protecting investors and consumers, and promoting confidence in the financial system

Evidence of the ability to:

clearly explain the features and roles of the participants in the Australian financial system and markets.

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

To complete the unit requirements safely and effectively, the individual must:

identify and describe relevant and current issues relating to the Australian financial system and markets, and the economic environment

list the different types of financial markets in Australia

explain the purpose of financial markets

describe the role of the Reserve Bank of Australia (RBA) and its monetary policy

list the main regulators and describe their roles

describe the different functions of money

describe the key functions of money

list instruments traded on the short-term money market

list different types of consumer activity in the financial system/markets.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the financial literacy field and include access to:

office equipment, technology, software and consumables

information about Australia’s financial system and other markets, basic economics and other relevant resources.

Assessors must satisfy NVR/AQTF assessor requirements.
Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
Identify specific financial markets in Australia 
Describe purpose of financial markets and when they emerged in Australia 
Identify participants in financial markets and discuss roles of banks and financial institutions as financial intermediaries 
Describe role of Reserve Bank of Australia (RBA) as Australia’s central bank and contrast with other banking institutions 
Explain importance and effect of RBA’s monetary policy on Australian economy and everyday consumers 
Describe various functions of money and discuss society’s motivations for holding money 
Describe the monetary cycle in the economy and on a global scale, and instruments traded on short-term money market 
Explain impact of increases and decreases in money supply and importance of regulating money supply of any country 
Describe role and impact of Commonwealth and state government actions on the economy with reference to current events and issues 
Explain impact of change in domestic interest rates on different sectors of the economy 
Discuss impact of changes in consumer activity on the Australian economy 
Identify main regulators of the financial system 
Use examples to explain role of each regulator in protecting investors and consumers, and promoting confidence in the financial system 
Describe various functions of money and discuss society’s motivations for holding money 
Describe the monetary cycle in the economy and on a global scale, and instruments traded on short-term money market 
Explain impact of increases and decreases in money supply and importance of regulating money supply of any country 

Forms

Assessment Cover Sheet

FNSFLT205 - Develop knowledge of the Australian financial system and markets
Assessment task 1: [title]

Student name:

Student ID:

I declare that the assessment tasks submitted for this unit are my own work.

Student signature:

Result: Competent Not yet competent

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

Signature:

Date:

Assessment Record Sheet

FNSFLT205 - Develop knowledge of the Australian financial system and markets

Student name:

Student ID:

Assessment task 1: [title] Result: Competent Not yet competent

(add lines for each task)

Feedback to student:

 

 

 

 

 

 

 

 

Overall assessment result: Competent Not yet competent

Assessor name:

Signature:

Date:

Student signature:

Date: