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Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

1. Describe what is meant by Australian financial markets
   • 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
2. Explain function and role of Reserve Bank of Australia (RBA)
   • 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
3. Explain Australia’s monetary 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
4. Explain key factors that influence the Australian economy
   • 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
5. Describe role of regulators
   • 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
6. Explain Australia’s monetary 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

Performance Evidence

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.

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Knowledge Evidence

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.

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