Assessment 1 – questions




Assessment 1 – questions

Assessment 1

Written and oral Questions


  • Inflation Rates. When inflation is high, financial service organisations tend to suffer. This is because inflation tends to affect the value of currency and this often has a ripple effect in the financial services sector. Apart from liquidity structures and processes, inflation causes instability in currencies. It also erodes client confidence especially foreign investors who can choose whether or not to use a particular country’s currency.
  • Economic policies. Macroeconomic policies can have far reaching impacts on the financial services sector. If a country makes unfavorable policies, the financial services sector is bound to lose while sound macroeconomic policies can make all the difference and enable a country’s financial service organisations to actually grow.
  • Exchange Rates across the world. Exchange rates across the world also affect financial service organisations all over the globe. Strong currencies such as the US Dollar, British Pound, Japanese Yen, European Euro and Canadian Dollar amongst others have a cross cutting impact on other currencies and financial markets in the world. When the exchange rates for these currencies fall the financial services sectors can experience problems.
  • 2.


    The Australian industry is looking to build on our capabilities to take advantage of emerging opportunities in the region and globally, with the active support of the Australian and State Governments.


    Investors in Australia can also look to Australia’s financial services industry for investment financing. Financial sector regulation is recognised as world best practice, and provides a transparent and secure base for expansion within the region.


    Australia offers global financial services institutions opportunities in a rapidly expanding domestic market and an ideal location for servicing markets in the Asian time zone.

    Asset-based finance and leasing

    Australia’s asset-based finance and leasing industry is a dynamic part of the country’s financing market with equipment leasing facilitating approximately 40 per cent of the nation’s equipment capital expenditure.

    Funds management/Superannuation

    Leading the Asia-Pacific region, Australia has one of the largest and fastest growing funds management sectors in the world.

    Hedge funds

    Australia’s hedge fund industry, underpinned by Australia’s globally significant investment management industry, has grown rapidly in recent years to become the largest in Asia.


    Australia has a developed, sophisticated, well regulated and highly competitive insurance sector. 

    Investment banking

    Australia has a well developed, world class investment banking sector.

    Payments, clearing and settlement systems

    The Australian payment, clearing and settlement systems contribute to the smooth functioning of the economy by providing a service that is safe, efficient, and reliable.

    Private banking

    Despite its relatively small population, Australia has one of the world’s largest private wealth markets.


    Assessment 1 – questions
    Last updated: Sep 2023

    Page 1

    opulation, Australia has one of the world’s largest private wealth markets.

    Private equity/Venture capital

    Australia’s venture capital industry has grown significantly in recent years driven by increased demand from emerging and expanding businesses for equity funding.

    Retail banking

    Posting a string of strong profit announcements in recent years, Australian retail banks have enjoyed a period of ongoing prosperity.


  • banking and capital markets
  • insurance
  • wealth (investment management and superannuation)
  • private equity
  • real estate and construction.
  • 4.

  • 1 Engagement
  • 2 Collecting the Client’s Information
  • 3 Analyse and Assess the Client’s Financial Status
  • 4 Identify Suitable Financial Planning Strategies and Develop the Financial Planning Recommendations
  • 5 Implement the Client’s Financial Planning Recommendations
  • 6 Review the Client’s Situation
  • 7 Professional Obligations
  • 5.

    You must consider your legal requirements when starting your business. If you do not follow legislative requirements and regulations, your business can face serious penalties. A range of legal requirements may affect your business.


    Codes of practice are referenced in Acts and Regulations. They may include:

  • general statements of principle and practical advice for how a business or industry should operate
  • detailed business practices where businesses must comply with specific standards.
  • You must comply with any instructions in a code of practice, as well as train your staff to ensure they are aware of and know how to comply with relevant codes. Ideally, you would cover codes of practice as part of your staff induction program, and hold regular ‘refresher’ training to ensure everyone is aware of their responsibilities under a code of practice.


    Sustainability has often been defined as how biological systems endure and remain diverse and productive. But, the 21st-century definition of sustainability goes far beyond these narrow parameters. Today, it refers to the need to develop the sustainable models necessary for both the human race and planet Earth to survive.

    Sustainability is a balancing act. The United Nation’s 1987 Report of the World Commission on Environment and Development: Our Common Future noted that sustainable development meets the needs of the present without compromising the well-being of future generations.

    To achieve these lofty goals, humans will have to re-examine their policies on:

  • Environmental protection.
  • Social responsibility.
  • Economic practice
  • 8.

  • Increased efficiencies: Show the bosses improved (ie, faster, cheaper, simpler) process systems that address cost centers like business travel, distribution or the supply chain.
  • Increased margins: Show them the smaller light bill because of LEDs or energy conservation tactics.
  • ...

    Assessment 1 – questions
    Last updated: Sep 2023

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