FPC001B Economic and Legal Context for Financial Planning

Question 1 Impact of economic variables and government policies
(20 marks | Word limit: 1,000 words)

LO1 Explore the role of intermediaries in financial markets.

LO2: Explain the impact of current issues and key economic and financial indicators on the Australian and global financial markets.

LO3: Analyse the impact of government and monetary policy on the Australian financial markets.

The case study mentions five (5) factors that Jane is concerned about being:

1. Labour market conditions
2. Interest rate environment
3. Global economic influences on the Australian economy
4. Local property market conditions
5. Domestic equity market performance.

For each factor (5 in total), you are required to provide:

1. An explanation of the factor, covering the current market environment applicable to that factor. (1 mark)
2. An explanation of how monetary and fiscal policy changes could influence the factor. (1 mark)
3. A clear and focussed explanation of how that factor and any monetary and fiscal changes has an influence on one (1) of Jane’s investment objectives of your choosing. (2 marks)

Total marks 20 marks