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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Apply basic economic principles to the financial services sector 
SAQA US ID UNIT STANDARD TITLE
14517  Apply basic economic principles to the financial services sector 
ORIGINATOR
SGB Financial Services 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 5  Level TBA: Pre-2009 was L5 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Registered" 
2003-08-13  2006-08-13  SAQA 0249/03 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2007-08-13   2010-08-13  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard is replaced by: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
230071  Apply basic economic principles to the financial services sector  Level 5  Level TBA: Pre-2009 was L5   

PURPOSE OF THE UNIT STANDARD 
This Unit Standard requires learners to apply basic economic principles to the financial services sector. It is intended to promote an in depth knowledge and understanding of the financial services industry in order to ensure knowledgeable and informed workers in the sector.

The qualifying learner is capable of:
  • Explaining the basic principles of economics.
  • Explaining the use of economic indicators.
  • Explaining the importance of government policies in the investment environment.
  • Applying the fundamentals of economics to the financial services environment. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    There is open access to this Unit Standard. Learners should be competent in Communication and Mathematical and Financial Literacy at NQF Level 4. 

    UNIT STANDARD RANGE 
    The range includes but is not limited to basic economic principles and the use of economic indicators in relation to the financial services environment in general and investment in particular. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the basic principles of economics. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The economic cycle is explained in terms of recession, depression, recovery and boom. 

    ASSESSMENT CRITERION 2 
    2. The concepts of demand, supply and equilibrium are explained and illustrated graphically. 

    ASSESSMENT CRITERION 3 
    3. The concepts of nominal and effective/real are compared with reference to interest rates and GDP. 

    SPECIFIC OUTCOME 2 
    Explain the use of economic indicators. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The concept of inflation is explained in terms of headline inflation, core inflation, CPIX, deflation and disinflation. 

    ASSESSMENT CRITERION 2 
    2. The concept of GDP is explained in terms of consumer expenditure; government expenditure, investment and export minus trade balance (C+I+G+(X-M). 

    ASSESSMENT CRITERION 3 
    3. The concept of interest rates is explained in terms of prime, money markets, repro and borrowing rates. 

    ASSESSMENT CRITERION 4 
    4. The concept of an economic indicator is explained and an indication is given of the relationship between inflation, GDP, interest rates, money supply, debt, currency, current account, trade account, gold and oil. 

    SPECIFIC OUTCOME 3 
    Explain the importance of government policies in the investment environment. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The concept of monetary policy is explained with reference to interest rates and inflation. 

    ASSESSMENT CRITERION 2 
    2. The concept of fiscal policy is explained in terms of GDP components, spending and tax. 

    ASSESSMENT CRITERION 3 
    3. The government stance on fiscal policy is explained and an indication is given of the implications of the current policy. 

    ASSESSMENT CRITERION 4 
    4. The government stance on monetary policy is explained and an indication is given of the implications of the current policy. 

    ASSESSMENT CRITERION 5 
    5. An indication is given of how current government initiatives potentially impact on the economic environment. 

    SPECIFIC OUTCOME 4 
    Apply the fundamentals of economics to the financial services environment. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The concept of market consensus is explained in terms of market response to data release. 

    ASSESSMENT CRITERION 2 
    2. The market response to data release that is higher, lower or in line with consensus is explained and an indication is given of the effect on cash, bonds, stocks and properties. 

    ASSESSMENT CRITERION 3 
    3. Economic forecast is applied to asset classes in order to make an investment selection. 

    ASSESSMENT CRITERION 4 
    4. Economic indicators that affect asset classes and geographic selection are named with examples. 

    ASSESSMENT CRITERION 5 
    5. The current economic forecast is used to suggest and substantiate an asset selection proposal. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    This Unit Standard will be internally assessed by the provider and moderated by a moderator registered by INSQA or a relevant accredited ETQA. The mechanisms and requirements for moderation are contained in the document obtainable from INSQA (INSQA framework for assessment and moderation). 

    UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    N/A 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    The learner is able to identify and solve problems in which responses show that responsible decisions using critical and creative thinking have been made in suggesting and substantiating as asset selection proposal. 

    UNIT STANDARD CCFO COLLECTING 
    The learner is able to collect, organise and critically evaluate information in order apply economic forecast to make an investment selection. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively using visual, mathematics and language skills in the modes of oral and/or written presentations in explaining and illustrating the concepts in the Unit Standard. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is able to demonstrate an understanding of the world as a set of related systems in explaining the relationship between the different economic indicators and the investment environment. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    UNIT STANDARD NOTES 
    This unit standard has been replaced by unit standard 230071, which is "Apply basic economic principles to the financial services sector", Level 5, 5 Credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  50481   National Certificate: Financial Markets and Instruments  Level 6  Level TBA: Pre-2009 was L6  Reregistered  2023-06-30  BANKSETA 
    Fundamental  49834   National Certificate: Financial Services: Long-Term Risk Assessment  Level 5  Level TBA: Pre-2009 was L5  Passed the End Date -
    Status was "Reregistered" 
    2012-06-30  INSETA 
    Fundamental  23973   National Certificate: Financial Services: Wealth Management  Level 5  Level TBA: Pre-2009 was L5  Passed the End Date -
    Status was "Registered" 
    2006-08-13  Was INSETA until Last Date for Achievement 
    Fundamental  49860   National Diploma: Financial Services: Long-Term Risk Assessment  Level 5  NQF Level 05  Reregistered  2023-06-30  INSETA 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. Azania Currency and Equity Markets 
    2. Chartall Business College 
    3. CKP Development Agency (Pty) Ltd. 
    4. Felix Risk Training Consultants 
    5. Full Value Financial Services (Pty) Ltd 
    6. Maharishi Invincibility Institute NPC 
    7. Octopus Training Solutions 
    8. Sanlam Life Insurance Ltd 
    9. The Academy of Financial Markets 
    10. The Facilitation Workshop 
    11. The Institute of Literacy Advancement 
    12. UCS Education and Training Services (Pty) Ltd 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.