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FNSINC601 Apply economic principles to work in the financial services industry FNSINC601 Apply economic principles to work in the financial services industry Release: 1 FNSINC601 Apply economic...

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FNSINC601 Apply economic principles to work in the financial services industry
FNSINC601 Apply economic principles to
work in the financial services industry
Release: 1
FNSINC601 Apply economic principles to work in the financial services industry Date this document was generated: 6 September 2018
Approved Page 2 of 4
© Commonwealth of Australia, 2018 PwC’s Skills for Australia
FNSINC601 Apply economic principles to work in the financial
services industry
Modification History
Release Comments
Release 1 This version first released with FNS Financial Services
Training Package Version 1.0.


Application
This unit describes the skills and knowledge required to apply
oad 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
oad
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.

Unit Sector
Industry capability

Elements and Performance Criteria
ELEMENT PERFORMANCE CRITERIA
Elements describe the
essential outcomes.
Performance criteria describe the performance needed to
demonstrate achievement of the element.
1. Apply economic
principles and theories
1.1 Develop and apply knowledge of economic principles relevant
to the industry
1.2 Apply microeconomic theory of markets and influences on
FNSINC601 Apply economic principles to work in the financial services industry Date this document was generated: 6 September 2018
Approved Page 3 of 4
© Commonwealth of Australia, 2018 PwC’s Skills for Australia
ELEMENT PERFORMANCE CRITERIA
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
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 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
4.1 Research cu
ent economic theories and their impact on the
industry to ensure relevant cu
ent knowledge
4.2 Integrate contemporary economic principles into work
practices


Foundation Skills
This section describes language, literacy, numeracy and employment skills incorporated in
the performance criteria that are required for competent performance.
Skill Performance
Criteria
Description
Reading 1.1, 1.2, 2.1, 2.2, 4.1 ï‚· Critically analyses complex documentation from a
variety of sources, and consolidates information relating
to specific criteria to assist in making high level business
and organisational decisions
Numeracy 2.2, 2.3 ï‚· Performs mathematical calculations to analyse financial
information, costs and values for pricing models and
capital structure
Navigate the
world of
work
1.3, 3.1, 3.2, 4.1 ï‚· Works autonomously, making high level decisions to
achieve and improve organisational goals
ï‚· Monitors and reviews organisational policy, procedures
and adherence to legislative requirements to implement
and manage change
ï‚· Ensures knowledge of products, legislation, regulations
FNSINC601 Apply economic principles to work in the financial services industry Date this document was generated: 6 September 2018
Approved Page 4 of 4
© Commonwealth of Australia, 2018 PwC’s Skills for Australia
and standards relevant to role is accurate, comprehensive
and cu
ent
Get the work
done
1.1, 1.2, 1.3, 2.1, 2.2,
2.3, 4.2
ï‚· Plans strategic priorities and outcomes within a flexible,
efficient and effective context in a diverse environment
exposed to competing demands
ï‚· Identifies key factors that impact on decisions and their
outcomes, drawing on experience, competing priorities
and decision-making strategies where appropriate
ï‚· Explores and incubates new and innovative ideas through
unconstrained analysis and critical thinking to develop
and improve organisational goals
ï‚· Uses the main features and functions of digital tools to
complete work tasks and access information


Unit Mapping Information
Code and title
cu
ent version
Code and title
previous version
Comments Equivalence status
FNSINC601 Apply
economic principles to
work in the financial
services industry
FNSINC601A Apply
economic principles
to work in the
financial services
industry
Updated to meet
Standards for
Training Packages.
Minor edits to
clarify performance
criteria.
Equivalent unit


Links
Companion Volume implementation guides are found in VETNet -
https:
vetnet.education.gov.au/Pages/TrainingDocs.aspx?q=c7200cc8-0566-4f04-b76f-e89fd
6f102fe
    FNSINC601 Apply economic principles to work in the financial services industry
    Modification History
    Application
    Unit Secto
    Elements and Performance Criteria
    Foundation Skills
    Unit Mapping Information
    Links
Answered Same Day Jan 22, 2021 FNSINC601 Training.Gov.Au

Solution

Mohammad Wasif answered on Jan 25 2021
150 Votes
Assessments
FNSINC601
Apply Economic Principles to Work in the Financial Services lndustry
FNS60215
Advanced Diploma of Accounting
Based on the prescribed Textbook:
Apply Economic Principles to Work in the financial services industry
By DiStasio & Georgeson
3rd Edition (January, 2016)
ISBN :978-1-925433-01-2
FNS60215 Advanced Diploma of Accounting
FNSINC601 - Apply Economic Principles to Work in the Financial Services lndustry
ASSESSMENT ACTIVITIES.
ASSESSMENT ACTIVITY 1- QUESTIONNAIRE(MULTIPLE CHOICE QUESTIONS) . ASSESSMENT ACTIVITY 2 - TRUE/ FALSE.
ASSESSMENT ACTIVITY 3 - SHORT ANSWER QUESTIONS.
ASSESSMENT ACTIVITY 4 - ESSAY QUESTIONS.
ASSESSMENT ACTIVITY 5- CASE STUDY
Assessment Activity 1 - Questionnaire (Multiple Choice Questions)
This assessment activity consists of twenty three(23) multiple choice questions. Choose ONE of the four answers to each question. Please answer all the questions in the spaces provided or as instructed by your Traine
Assessor.
QUESTION 1: A disadvantage of a market economy is:
Answer:
. They promote overproduction and waste
QUESTION 2: A severe flood crisis in Queensland will cause the supply curve for fruit from Queensland to
    Shift to the left resulting in higher prices b. Shift to the right resulting in higher prices c. Shift to the left resulting in lower prices d. Shift to the right resulting in higher prices
Answer : c. Shift to the left resulting in lower prices
QUESTION 3: An increase in the price of Coca-Cola will cause:
    A shift in the demand curve to the right b. An upwards movement along the demand curve c. A downwards movement along the demand curve d. A shift in the demand curve to the left.
Answer:
    d. A shift in the demand curve to the left.
QUESTION 4: Starting from an efficient outcome a change in price will most likely
a. Make society worse off b. Make society better off c. Make no change to total welfare d. Not enough information
Answer:
    Make society better off
QUESTION 5: A dead weight loss means that:
    The market is not producing an efficient outcome b. Everyone is worse off than they would be at equili
ium c. Price is above or below equili
ium price d. All of the above
Answer: b. Everyone is worse off than they would be at equili
ium
QUESTION 6: In the long run there are:
    Both fixed and variable costs b. No variable costs c. No fixed costs d. No marginal costs
Answer : No fixed costs
QUESTION 7: Monopolistic competition is similar to perfect competition except:
    There are high ba
iers to enter the market b. There are a small numberof firms in the market c. All firms charge the same market price d. The product is slightly differentiated, giving firms some market powe
Answer: d. The product is slightly differentiated, giving firms some market powe
QUESTION 8: Countries trade with each other when
    One country does not possess a resource or good that another country has. b. Both countries have the resources to produce a good but one can do so more efficiently than the other c. One country has a lower opportunity cost of producing a good than another country d. All of the above
Answer : d. All of the above
QUESTION 9: As the number of workers increases the marginal product of labour will eventually
    Rise b. Fall c. Stay the same d. None of the above
Answer : b.Fall
QUESTION 10: The most volatile component of aggregate demand is
    Consumption b. Government spending c. Investment d. Exports
Answer : c. Investment
QUESTION 11: The unemployment rate measures
a. The working age population b. The percentage of people that are looking for work(but nor cu
ently working) divided by the labour force
c. The labour force divided by the working age population d. The working age population that are either employed or looking for work.
Answer : b. The percentage of people that are looking for work(but nor cu
ently working) divided by the labour force
QUESTION 12: Which of the following would most likely cause an increase in the inflation rate?
    Increased expectations of higher inflation in the near future b. Aggregate supply outstripping aggregate demand c. A reduction in world oil prices d. All of the above.
Answer : d . All of the above
QUESTION 13
If the RBA wanted to stimulate the economy with expansionary monetary policy it would
    Sell more government securities to the public b. Buy more government securities from the public c. Reduce the tax rate d. Increase government spending
Answer : c. Reduce the tax rate
QUESTION 14: The main reason for Australia's persistent cu
ent account deficit is
    A savings-investment gap b. The government running budget deficits c. Australians going overseas too much d. The exchange rate being too high
Answer : b. The government running budget deficits
QUESTION 15: An increase in the demand for AUD will cause:
    The demand curve for AUD to shift to the left resulting in an appreciation b. The demand curve for AUD to shift to the right resulting in an appreciation c. The demand curve for AUD to shift to the right resulting in a depreciation d. The demand curve for AUD to shift to the left resulting in a depreciation.
Answer : c . The demand curve for AUD to shift to the right resulting in a depreciation
QUESTION 16: The Phillips Curve states that high unemployment will result in
a. High economic growth
. Low economic growth
    High inflation
d. Low inflation
Answer : c High Inflation
QUESTION 17
Sub-prime mortgages were those given to families with
    Good credit history b. Very high incomes c. Very low incomes d. All of the above
Answer : a Good credit history
QUESTION 18
If interest rates rise, the price of a bond will a. Also rise b. Fall c. Stay the same because the interest
on a bond is fixed d. Not enough information to answer the question
Answer : b. Fall
QUESTION 19: The Beta of a security measures its:
    Unsystematic risk b. Diversifiable risk c. Systematic risk d. Credit risk.
Answer: c . Systematic risk
QUESTION 20
In the real world capital structure policy is
a. Relevant and does impact shareholder wealth b. I
elevant and has no impact on shareholder wealth c. I
elevant and does impact shareholder wealth d. Up to shareholders.
Answer : c. I
elevant and does impact on shareholder wealth
QUESTION21
When the price of a normal good rises:
a. Consumers will demand more of the good and producers will supply more of the good
. Consumers will demand more of the good and producers will supply less of the good
    Consumers will demand less of the good and producers will supply more of the good
d.Consumers will demand less of the good and producers will supply less of the good.
    Answer : Consumers will demand less of the good and producers will supply less of the good.
QUESTION 22
A negative externality:
a Is an economic activity that has a negative impact on a bystander not involved in that activity.
. Is a type of market failure
    Will have an associated public cost that private firms do not pay
    All of the above
Answer : d All of the above
QUESTION 23: The profit maximizing level of output is where:
a. Marginal revenue is above marginal cost b. Marginal revenue is lower than marginal cost
    Marginal revenue equals marginal cost
d. Average cost equals fixed cost
Answer : c . Marginal revenue equals marginal cost
Assessment Activity 2 - True / False
This assessment consists of fifteen (15) true/ false questions. Please answer true or false next to each question as instructed by your...
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