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FNSINC401A Assessment 1 v2
Version 1
Last updated Feb 12
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Diploma of Finance and Mortgage
Broking Management
Course 10732
Unit 2 Assessment
Apply principles of professional practice to work in the financial services industry
All elements of this unit are covered by this assessment
Allowed for AC No of errors Result
Q1- 3 <5
Q4-7 <7
Q8-9 <4
Assessment overall result
This unit is UNGRADED and will be recorded as competent (AC) /not yet competent (NC) on your official transcript
To be assessed as competent in this section of the unit you must achieve 80% in each of Parts A, B and C
ALL questions to be attempted
I accept by uploading this assessment that I am certifying that this is entirely my own work, except where I have given fully documented references to the work of others, and that the content of this assessment has not previously been submitted for assessment in any formal course of study.
Note: Copying information directly from the course notes is plagiarism unless it is properly referenced. In addition it is not a competent answer unless an explanation in your own words is also provided to demonstrate your understanding.

Question 1
Match the following financial system terms with their correct description:
1. Financial intermediary
2. Financial system
3. Direct financing
4. Australian Prudential Regulation Authority (APRA)
5. Reserve Bank of Australia (RBA)
6. Australian Securities and Investments Commission (ASIC)
7. Open Market Operations
8. Indirect financing

Number Description
8 funds within the financial system are channelled via financial intermediaries
comprises individuals, unincorporated traders, companies, government organisations, importers and exporters which are involved in facilitating the process of exchange of financial assets
has responsibility for supervision and regulation of the Australian Financial System
a “go-between”, someone who often is required to act in some capacity between two or more parties
the buying and selling of Commonwealth Government securities by the Reserve bank of Australia (RBA) in the secondary market
has responsibility for Monetary Policy
covers market integrity and consumer protection
usually only large borrowers with unquestionable creditworthiness obtain funds in this manner
Question 2
Interest rates are forecast to rise by 1.5% over the next six months.
Required: Explain four ways this rate rise will impact a mortgage broking business.

Question 3
You are working at a mortgage broking business and Joe (one of the new brokers) mentions that he is buying an investment property with his brother. He does not see any problem in being the broker that processes this loan transaction from beginning to end.
a) What is the legal term for this situation?
b) Advise Joe why it might be better to have another one of the brokers in the office look after this loan.
c) If Joe decides to process the loan himself list the four steps he should take.
Question 4
You work in the offices of Careful Financial Services who employ 8 people.
Required: Using the key sustainability issues identified on pages 25-27in the Learner Guide, complete the table below to identify four ways the business could be environmentally friendly
Action Description of how this would be environmentally friendly
Eg. Use recycled paper when photocopying Uses fewer resources.
Use of recycled paper will reduce the amount of trees cut down as less original paper will need to be produced
Question 5
Joe (the new broker) has returned from a customer interview and complains that he forgot to take the product brochures and also had to borrow a pen from the customer as he forgot this as well.
The customer mentioned some special requirements during the interview and he is not sure how he will remember what they said when he puts the application for the loan together.
a) List two documents Joe could use to assist him.
b) Explain to Joe how the use of each of these documents could help to fix the problems he encountered in his recent interview.
Document Explanation
Question 6
Recently you have noticed that two of the members of your team (Sally and Maria) have not been working well together. They avoid each other and have been arguing. This is now affecting the performance of the team.
Required: List and explain the five steps that could be taken to resolve this situation. In your answer be specific to the problems between Sally and Maria.
Question 7
Following on from the scenario in question 6 you have now met with the two team members and you find that the issue that is causing the conflict is that Sally feels that Maria does less work than she does.
Required: List and explain two actions that could be taken to encourage cooperation between Sally and Maria and the other members of the team.
Action Explanation
Question 8
You work in a mortgage broking business and are part of the loan writing team.
Required: Using the list of tasks in the table below identify:
a) The priority of each task numbering from 1 to 5 (with 1 being most important or highest priority and 5 being least important or lowest priority)
b) Whether the task will be completed Individually or with the Team.
Task a) Priority b) Individually or Team
New loan application
Customer needs to settle in 6 weeks
Application to increase loan
Renovations to start next week
Prepare team presentation on how yearly goals were achieved
Presentation is scheduled in 2 weeks
New team goals to be set for financial year
Due in 3 weeks
Marketing campaign to be developed
To be implemented in 6 months
Question 9
Having successfully completed your Certificate IV in Finance and Mortgage Broking you will need to plan for further professional/self development.
a) List two ways you will continue your self development
b) Explain how these will be beneficial to your ongoing development.
Continuing self development Explanation of benefits