Diploma of Finance and Mortgage Brokings

Running head: DIPLOMA OF FINANCE AND MORTGAGE BROKING
Diploma of Finance and Mortgage Broking
Name of the Student
Name of the University
Author Note

DIPLOMA OF FINANCE AND MORTGAGE BROKING1
Table of Contents
Task 1...............................................................................................................................................4
Question 1....................................................................................................................................4
Question 2....................................................................................................................................4
Task 2...........................................................................................................................................4
Question 1....................................................................................................................................4
Question 2....................................................................................................................................6
Task 3...........................................................................................................................................7
Question 1....................................................................................................................................7
Question 2....................................................................................................................................7
Question 3....................................................................................................................................7
Task 4...........................................................................................................................................8
Question 1....................................................................................................................................8
Question 2....................................................................................................................................9
Question 3....................................................................................................................................9
Task 5.........................................................................................................................................10
Question 1..................................................................................................................................10
Question 2..................................................................................................................................11
Question 3..................................................................................................................................11
Question 4..................................................................................................................................12

DIPLOMA OF FINANCE AND MORTGAGE BROKING2
Question 5..................................................................................................................................13
Question 6..................................................................................................................................13
Question 7..................................................................................................................................13
Question 8..................................................................................................................................14
Question 9..................................................................................................................................14
Task 6.........................................................................................................................................14
Question 1..................................................................................................................................14
Question 2..................................................................................................................................15
Question 3..................................................................................................................................16
Task 7.........................................................................................................................................16
Question 1..................................................................................................................................16
Question 2..................................................................................................................................16
Question 3..................................................................................................................................17
Task 8.........................................................................................................................................17
Question 1..................................................................................................................................17
Question 2..................................................................................................................................18
Question 3..................................................................................................................................20
Question 4..................................................................................................................................20
Sustainability goal......................................................................................................................20
Economic outcome/s..................................................................................................................20

DIPLOMA OF FINANCE AND MORTGAGE BROKING3
Task 9.........................................................................................................................................21
Question 1..................................................................................................................................21
Question 2..................................................................................................................................21
Question 3..................................................................................................................................21
Question 4..................................................................................................................................21
Question 5..................................................................................................................................21
Question 6..................................................................................................................................22
Question 7..................................................................................................................................22
Question 8..................................................................................................................................22
Bibliography...............................................................................................................................23

DIPLOMA OF FINANCE AND MORTGAGE BROKING4
Task 1
Question 1
The three external factors which could influence the movement in the interest rates and
also dictate the economic and political climate are the level of inflation, growth in the wage rates
and the level of job security in the country. In case of low inflation, the consumers choose to
spend more which results in the lower interest rates. If the rate of inflation is high, then the
government increases the interest rates to compensate the consumers for sacrificing their
consumption. Similarly, growth of wages also positively impacts the interest rates as there is a
growth in the income available for saving. The job insecurity results in a decrease in the interest
rates as investors prefer to save more than they spend in these situations. Hence, the incentive to
save becomes lower due to lower interest rates. In these cases, the interest rates not only affect
the Central bank but they also effect the investment choices of the financial and other sectors in
the economy.
Question 2
The two financial services sectors that are involved in influencing the interest rates
prevalent in the economy are the banking sector and the corporate sector. The banking sector
determines the interest rates prevalent in the economy and they change the interest rates
according to the conditions existing in the market. The corporate giants determine the interest
rates by purchasing bonds from the markets and injecting the funds into the banks to fund their
business operations in the short term and the long run.

DIPLOMA OF FINANCE AND MORTGAGE BROKING5
Task 2
Question 1
Dear Colleagues,
The Australian Financial Complaints Authority is an Australian external dispute
resolution scheme which intends to resolve the complaints of the consumers with their member
financial organisations. Based on the ASIC Regulatory Guide RG 165, various bodies like the
Australian financial services licensees, credit licensees and authorised credit representatives are
all required to be members of AFCA. The main advantage of having the membership of AFCA is
that most of its members do not have any complaint lodged against them. This is because of the
fair, independent and effective solutions provided by the experienced and professional staff
operating within the organisation. Other benefits of the membership of AFCA include the
expertise, professional development, knowledge and security provided by the scheme. It also
ensures that the firms registering with it are complying with the guidelines of ASIC.
The key points that are needed to be considered in communicating to the customers are
the purpose of AFCA and its basic nature. As the purpose of it is to settle complaints from
consumers and small businesses, it saves a huge amount of time and resources for the same.
Apart from it, the fact related to it being made mandatory by the ASIC should also be explained
to the consumers. However, it should also be mentioned that it is not a company or a government
department to avoid confusion about its nature and the bodies governing it. It also provides
certain confidence to the consumers before investing in the same. The application fees and the
basis of its calculation also need to be explained to the consumers. The range of complaints
which are covered by the scheme including credit, financial, loan, banking deposits and