Unit of competency Outline
Date retreived
22/07/2026 9:38 PM AWST
22/07/2026 9:38 PM AWST
Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.
Develop knowledge of the Australian financial system and markets
Develop knowledge of the Australian financial system and markets
Unit of competency
National Code
FNSFLT205
FNSFLT205
State Code
AUR00
AUR00
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
16/09/2015
Field of Education
080101 - Accounting
Original Release Date
16/09/2015
Nominal Hours
40
Description
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.
Notes
Elements and Performance Criteria
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
No information
No information
Replaces
| State Code | National Code | Title | Type |
|---|---|---|---|
| D4113 | FNSFLT205A | Develop understanding of the Australian financial system and markets | Unit of competency |
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| OCZ14 | FNSFLT215 | Develop knowledge of the Australian financial system and markets | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| AWB1 | FNS10115 | Certificate I in Financial Services | Qualification |
| AVX4 | FNS20115 | Certificate II in Financial Services | Qualification |