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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Explain money markets and money market instruments 
SAQA US ID UNIT STANDARD TITLE
243154  Explain money markets and money market instruments 
ORIGINATOR
SGB Insurance and Investment 
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 4  NQF Level 04 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

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 replaces: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
113908  Explain money markets as fixed interest bearing instruments  Level 4  NQF Level 04   

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for learners who require a basic introduction to investments. It will add value to Trainee Financial Planners, Intermediaries, Product Developers, Co-ordinators of Medical Schemes, Financial Call Centre Agents and Trustees and Principal Officers of medical schemes and retirement funds.

The qualifying learner is capable of:
  • Explaining why the Money Market exists.
  • Analysing the Money Market environment.
  • Describing the role players in the Money Market.
  • Explaining the basic Money Market instruments. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners are competent in Communication and Mathematical Literacy at Level 3. 

    UNIT STANDARD RANGE 
  • Lenders in the Money Market include, but are not limited to, Collective Investment Schemes, banks, institutional and retail investors, pension funds, investment managers and Corporates.
  • Borrowers in the Money Market include, but are not limited to, governments, municipalities, parastatals, utilities, Corporates and banks.
  • Facilitators are banks.
  • Different types of Money Market instruments include, but are not limited to, negotiable certificates of deposit, promissory notes, paper acknowledgement of debt, treasury bills, short term bonds and swops.
  • Asset classes include equities, capital markets and property.
  • Other interest bearing instruments include, but are not limited to call deposit, notice deposit and linked interest rate deposits.
  • Nature of return includes interest, discounts and how and when income is derived.
  • The concept of a money market includes retail and wholesale markets including size and terms. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain why the Money Market exists. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The concept of the Money Market is explained with reference to the financing and investment needs of borrowers and lenders. 

    ASSESSMENT CRITERION 2 
    The short term nature of the Money Market is explained with reference to liquidity, risk, time horizons, inflation, nature of return and volatility. 

    SPECIFIC OUTCOME 2 
    Analyse the Money Market environment. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The economy, as the environment in which Money Markets operate, is explained with examples. 

    ASSESSMENT CRITERION 2 
    Economic conditions are analysed in terms of the interdependence between inflation, interest rates, economic growth versus recession and exchange rates for different scenarios. 

    ASSESSMENT CRITERION 3 
    The way in which monetary and fiscal policy affects Money Market instruments is explained and an indication is given of the effect on Money Markets. 

    SPECIFIC OUTCOME 3 
    Describe the role players in the Money Market. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The lenders in the Money Market are identified and an indication is given of why they operate in Money Markets. 

    ASSESSMENT CRITERION 2 
    The borrowers in the Money Market are identified and an indication is given of why they operate in Money Markets. 

    ASSESSMENT CRITERION 3 
    Facilitators in the Money Market are identified and an indication is given of the role of each. 

    SPECIFIC OUTCOME 4 
    Explain the basic Money Market instruments. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The different Money Market instruments are named and explained in terms of nature of return and liquidity. 

    ASSESSMENT CRITERION 2 
    Different types of Money Market instruments are compared in terms of cash flow, nature of return and liquidity. 

    ASSESSMENT CRITERION 3 
    Interest bearing instruments other than the Money Market instruments that are offered to the general public investors are named and an indication is given of when it is appropriate to use each. 

    ASSESSMENT CRITERION 4 
    A typical Money Market instrument is compared to typical instruments in other asset classes in terms of risk, nature of return, term, liquidity and issuer. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Anyone assessing a candidate against this Unit Standard must be registered as an assessor with the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this Unit Standard must be accredited as a provider through the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines and the agreed ETQA procedures. 

  • 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 COLLECTING 
    The learner is capable of collecting, organising and critically evaluating information in comparing different types of Money Market instruments. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is capable of communicating effectively in describing the Money Market environment, role players and Money Market instruments. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is capable of demonstrating an understanding of the world as a set of related systems by analysing economic conditions and the interrelatedness of different financial indicators. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    This unit standard replaces unit standard 113908, " Explain money markets as fixed interest bearing instruments ", Level 4, 2 credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  66613   Further Education and Training Certificate: Wealth Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered" 
    2021-06-30  As per Learning Programmes recorded against this Qual 


    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. African Resources & Financial Training (Pty) Ltd 
    2. CKP Development Agency (Pty) Ltd. 
    3. De Vries Management & Training Services cc 
    4. Faisit (Pty) Ltd 
    5. Masifunde Training Centre (Pty) Ltd 
    6. Ray Strodl Consulting (Pty) Ltd 
    7. RJM Educational Consulting (Pty) Ltd 
    8. Sanlam Life Insurance 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.