FNS50815 Diploma of Finance and Mortgage Broking Management Module 1 Written Assessment

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FNS50815 Diploma ofFinance and Mortgage Broking
Management
Module 1 Written Assessment
Submission instructions:
Key steps that must be followed:
1. Please complete the Declaration of Authenticity at the bottom of this page.
2. Once you have completed all parts of the assessment and saved them (e.g. to your desktop
computer), login to the Monarch Learning Management System (LMS) to submit your assessment.
3. In the LMS, click on the file ‘Submit Dip FMB Module 1 Assignment’ in the Module 1 section of
your course and upload your assessment files by following the prompts.
4. Please be sure to click ‘continue’ after clicking ‘submit’.This ensures your assessor receives
notification – very important!
Declaration of Understanding and Authenticity *
I have read and understood the assessment instructions provided to me in the Learning Management System.I am aware of whereto
find the assessor’s feedback for the assessment. I am aware of the appeals process, should the need arise. I alsounderstand Imust be
assessed as ‘satisfactory’ in all parts of the assessment to gain an overall satisfactory result for this unit of competency. Iunderstand
a person found responsible for academicmisconduct will be subject to disciplinary action (refer to Student Information Guide).
I certify that the attached material is my original work. No other person’s work hasbeen used without due acknowledgement. I
understandthat the work submitted may be reproduced and/or communicated for the purposeof detecting plagiarism.
Student Name*: Date:
* I understand that by typing my name or inserting a digital signature into this box that I agree and am bound by the above student
declaration.
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Important assessment information
Marking and feedback
This assignment contains fourteen (14) assessment activities each containing specific instructions. You must answer
every question/complete each task within each activity. This particular assessment forms part of your overall
assessment for the following units of competency:
 FNSFMB402
 FNSINC402
 FNSFMK505
Grading for this assessment will be deemed ‘satisfactory’ or ‘not satisfactory’ in line with competency-based principles.
What does ‘satisfactory’ mean?
These answers contain sufficient evidence in response to the question/s with limited serious errors in fact or application.
If incorrect information is contained in an answer, it must be fundamentally outweighed by the display of competence.
This will be assessed against a marking guide provided to assessors for their determination.
What does ‘not satisfactory’ mean?
This occurs when an assessment does not contain sufficient evidence of applied knowledge and skill. These answers may
not address the question specifically, or are incorrectly applied. Answers that omit to provide a response to any
significant issue (where multiple issues must be addressed in a question) may also be deemed not satisfactory. Answers
that have faulty reasoning, a poor standard of expression or include plagiarism may also be deemed not yet satisfactory.
Please note, additional information regarding Monarch’s plagiarism policy is contained in the Student Information Guide
which can be found here: http://www.monarch.edu.au/student-info/
What happens if you are deemed not satisfactory?
Re-assessment
As soon as practicable after you have been informed of the requirement to be re-assessed, you will be given one more
opportunity to re-submit the assessment. Before you make your second attempt, you will need to consult with your
trainer/ assessor and revise the training.
You are re-assessed in only the areas assessed as not satisfactory. It is at the assessor/s discretion to re-assess the entire
assessment should it be demonstrated an overall understanding of this unit has not been achieved.
You will know your assessment is deemed not satisfactory if your grade book in the Monarch LMS says ‘NS’ after you
have received an email from your assessor advising your assessment has been graded.
Important: It is your responsibility to ensure your assessment resubmission addresses all areas deemed unsatisfactory
by your assessor. Please note, if you are still unsuccessful in reaching a satisfactory standard after resubmitting your
assessment, you will be required to repeat those units.
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In the event that you have concerns about the assessment decision then you can refer to our complaints and appeals
process, also contained within the Student Information Guide.
When does ‘competence’ come in to it?
If you achieve a grade of satisfactory for ALL assessments for a unit of competency, you will be deemed competent in
that unit.
How to answer written questions
After each question, there is a blank text box for you to start typing your answer in, as indicated below.
1. Here is a sample task instruction, asking you to enter text in the box below.
Type your answer here...
2. What is the answer to this question?
You can type as much as you like. The blank line is not an indication of how much you should write. The box will expand
with the amount of text you enter. If you are not sure how much to write, look at the question hints, criteria, and word
count guide. Note – the word count is a GUIDE ONLY. It’s not a maximum or a minimum, just a clue based on the model
answer written by the course developers.
For some tasks, you’ll be asked to copy and paste content in to the answer box. If in doubt, ask your trainer.
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Activity 1
Explaining finance and mortgage broking services to clients
1. How would you explain the finance and mortgage broking process to clients, in a clear and unambiguous way?
HINT: In your answer, include every step from the client first contacting you, to the follow-up service you
provide after the loan has been established.
The finance and mortgage broking processes are addressed to the client in a proper and unambiguous manner
by explaining the background, role and the credentials to the client in order to create a rapport.
2. How would you explain your background, credentials and role as a broker?
All the explanations regarding the credentials and the role as a broker to the client would be made with the help
of explaining the values and the services and the capacity of the company to the clients and make them
understand about the charges and the fees and the complaint resolution procedures.
3. How would your explanation above help build rapport with the client?
With the help of the explanations that has answered above with regards to all the services would be done by the
company, the client will be having a clear idea about all the operations and thereby a good rapport will be
created.
4. Explain the services a broking business can provide. Make sure you cover the extent of what you can do and the
limits of what you are authorised to do.
There are various sorts of services that are offered by a broking business organization. One of the primary
services of the company has been offering various kinds of investment products with the help of which the client
can make proper investments according to their own goals and objectives. These companies even provide advice
and suggestions with respect to the changes in the investments that can be made.
5. Explain the values of a broking business and provide some examples of professional conduct.
The values of a broking business include assisting the client with the best investment option in accordance to the
need of the client with the help of which the client get the best returns.
For example the income of the client is taken into consideration and accordingly the risk taking capacity of the
client is even known. The short term and long term goal of the client is even understood after which the proper
portfolio for the client is suggested.
6. Write at least two (2) questions you could ask a client to confirm that they understand the fees and charges
involved in the service you provide.
The two questions that can be asked to the client in order to confirm that they understand the fees and charges
associated with the services are as follows:
Are you satisfied with the fees and the charges that would be levied?
Do you think the fees and the charges appropriate with respect to the services that would be offered?
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Activity 2
Explaining finance terms and concepts
1. Explain the concept of credit.
HINT: Most dictionary definitions are under 30 words.
Credit is known to be a contractual agreement within which a borrower gains something of value now and looks
to repay the lender at later point of time generally with interest
2. What is a credit reporting service?
Credit bureaus, even known as credit reporting agencies, are organizations that record and maintain consumer
credit data thereafter resell it to other companies in the form of a credit report.
3. Describe three (3) elements that make up the economic environment.
The three elements that make up the economic environment are:
Political environment, Socio-cultural environment and technological environment
4. What is the business cycle?
Business cycles are considered as having four distinct sections and they are namely: peak, trough, contraction,
and expansion. These are the phases and the fluctuations that are faced by every organization in the economy.
5. What are financial markets?
The financial market is an extensive term explaining any marketplace in which trading of securities inclusive of
equities, bonds, currencies and derivatives take place.
6. Name three (3) parties that participate in the financial industry. Describe each party’s role in the industry.
The three parties are investor, speculator and retail. Investors look to make investments in the market, the
speculators make speculations in the market with respect to the trend in the market. Retail on the other hand
undertakes the trade in the market.
7. What are interest rates and why are they charged?
Interest rates are charged in order to pay off the debt. The interest acts as the buffer for the long time that is
taken to pay off the debt.
8. How are interest rates changed and set?
The interest rates are changed and set with respect to the probability of the debt being repaid.
9. What are exchange rates?
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Exchange rate refers to the amount that is used for the currency converter with respect to the value of money of
two different countries.
10. Give an example of how exchange rates might affect a business.
A company has their business in Australia and even in USA. The profit that is earned in Australia may not be
sufficient in USA because as per the exchange rate the value of money will differ.
11. What is inflation?
Inflation is a sustained rise in the general extent of prices for goods and services.
12. What is a deposit bond?
Deposit bonds are a sort of Surety bond ― a financial tool generally used in Australia as a substitute to a cash
deposit.
13. What is the procedure for lodging a deposit bond?
An entity enters into an agreement to buy residential property; it is a general practice for the purchaser to lodge
a cash deposit and at this point of time deposit bonds are lodged.
14. Define the lender in a transaction –what rights and obligations do they have?
The company or the entity that lends money is a lender. They have the right to make a claim for the money that
has been provided.
15. Define the borrower in a transaction – what rights and obligations do they have?
Borrower is an entity that takes the money from the lender. They are obligated to pay back the money to the
lender.
16. Define the lessor in a lease agreement. what rights and obligations do they have?
It is known to be a company or an entity that leases their property to another entity. They are obligated to
receive money on behalf of the lease given.
17. Define the lessee in a lease agreement. what rights and obligations do they have?
The entity that takes the property on lease from another is known to be lessee. They are obligated to pay the
money and leave the property after the agreement is over.
18. Define the mortgagee in a transaction. what rights and obligations do they have?
The lender in a mortgage is known to be the mortgagee. They are obligated to receive money.
19. Define the mortgagor in a transaction. what rights and obligations do they have?
The entity that takes the mortgage is known to be the mortgagor. They are obligated to pay the mortgage on
time.
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