Elements and Performance Criteria

RANGE STATEMENT
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
The role of the RBA includes:
banker to the Commonwealth government, banks and other financial institutions
managing government debt
regulating the payments system
setting and implementing monetary policy.
The effect of the RBA's monetary policy may include:
changes in interest rates
flow on changes to employment, prices and production levels
increases or decreases in the supply of money in the Australian economy.
Maintaining financial stability refers to:
acting to avoid or minimise a systemic collapse of financial institutions.
The role of the RBA in regulating the Australian Payments System may include:
fulfilling its regulatory responsibilities by controlling risks and promoting efficiencies
participating in the financial system as banker to the Commonwealth government
providing facilities for final settlement of transactions.
Motivations for holding money may include:
precautionary demand for money to pay future expenses which may not be anticipated
speculative demand for money to be able to take advantage of future price changes in favour of the purchaser
transactions demand for money to pay every day predictable expenses.
The functions of money may include:
as a means of exchange for acquiring goods and services
indications of relative values between goods and services
measure of liquidity.
Thepurpose of financial markets includes:
enabling participants to invest surplus funds by buying securities
enabling participants to raise required funds by issuing securities.
The major markets within the Australian financial system include:
bond market
derivatives markets
equity or share market as traded on the Australian Securities Exchange (ASX)
financial futures market
foreign exchange market
money market
options market.
Instruments traded on the short term money market include:
bills of exchange
commercial bills
government bills
promissory notes
treasury notes.
Main regulators in the financial system may include:
Australian Prudential Regulation Authority (APRA)
Australian Securities and Investments Commission (ASIC).

EVIDENCE GUIDE
The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the ability to:
develop customer awareness of the features and roles of the participants within the Australian financial system and markets
translate complex information into plain language that may be understood by a variety of people with minimal financial market knowledge.

Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment
access to and the use of a range of common office equipment, technology, software and consumables
access to Australian financial systemand markets information.

Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:
evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency
observing processes and procedures in workplaces or role plays
verbal or written questioning on underpinning knowledge and skills
setting and reviewing workplace projects and business simulations or scenarios.

Guidance information for assessment