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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. Explain to customers the function and role of Reserve Bank of Australia (RBA)
   • Communicate role of Reserve Bank of Australia (RBA) as Australia’s central bank and differences between RBA and other banking institutions to customers
   • Explain importance and effect of RBA’s monetary policy on the Australian economy and consumers’ personal finances to customers in plain language
   • Explain role of bank in maintaining financial stability and regulating the Australian Payments System to customers
2. 2. Outline role of money and Australia's monetary base
   • Identify and discuss society’s motivations for holding money and various functions of money with customers
   • Explain impact of changes in supply of money to customers in plain language
3. Outline main features of the Australian financial markets
   • Identify and communicate purpose of financial markets and major markets in the Australian financial system to customers
   • Discuss role of banks and financial institutions as financial intermediaries with customers
   • Outline, in basic language, the role and function of short-term money market and types of products it deals in for customers
4. Provide information to customers about regulation of financial system
   • Identify role of independent regulation in the financial system and main regulators of financial system, and discuss their roles with customers
   • Provide examples of protection afforded individuals by regulators to customers
5. Outline role of money and Australia's monetary base
   • Identify and discuss society’s motivations for holding money and various functions of money with customers
   • Explain impact of changes in supply of money to customers in plain language

Performance Evidence

Evidence of the ability to:

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

convert complex information into plain language that may be understood by a variety of people with minimal financial market knowledge.

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 the functions of money and motivations for holding money

list instruments traded on the short-term money market

identify and explain the key features of the Australian financial system and markets, and state of the economic environment

describe key features of relevant industry codes of practice and legislation relating to privacy, consumer credit and protection, and debt recovery

identify and explain the roles and relationships between participants in the Australian financial services industry, including:

the Reserve Bank of Australia

banks and other financial intermediaries

key regulators.

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