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

Describe different types of interest bearing investments and compare these to equities 
SAQA US ID UNIT STANDARD TITLE
12171  Describe different types of interest bearing investments and compare these to equities 
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  3 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Reregistered" 		 2004-12-02  2007-12-02  SAQA 1657/04 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2008-12-02   2011-12-02  

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 does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This unit standard deals with the knowledge and skill needed to understand interest-bearing investments.

The qualifying learner is capable of:
  • Understanding interest bearing and discount instruments.
  • Explaining different deposit based options.
  • Understanding money market and capital market investment instruments.
  • Comparing interest bearing investments and equities. 
    		•

    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, Mathematical Literacy and Financial Literacy at NQF Level 3. 

    UNIT STANDARD RANGE 
    The typical scope of this unit standard is interest bearing investment instruments and discount instruments, deposit based options, capital markets and money markets. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Demonstrate knowledge and understanding of interest bearing and discounted products. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The concept of an interest-bearing product is explained with examples. 

    ASSESSMENT CRITERION 2 
    2. Three interest-bearing products are compared in terms of liquidity, rate of return and risk. 

    ASSESSMENT CRITERION 3 
    3. The effect of inflation on the real return of an interest-bearing product is calculated and demonstrated using an example. 

    SPECIFIC OUTCOME 2 
    Explain different deposit based investments. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The concept of a call deposit is explained and an indication is given of the advantages and disadvantages of this kind of investment. 

    ASSESSMENT CRITERION 2 
    2. The concept of a notice deposit is explained and an indication is given of the advantages and disadvantages of this kind of investment. 

    ASSESSMENT CRITERION 3 
    3. The concept of a fixed deposit is explained and an indication is given of the advantages and disadvantages of this kind of investment. 

    ASSESSMENT CRITERION 4 
    4. The concept of a linked rate deposit is explained and an indication is given of the advantages and disadvantages of this kind of investment. 

    SPECIFIC OUTCOME 3 
    Demonstrate knowledge and understanding of money market investment instruments. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The concept of a money market is explained with examples. 

    ASSESSMENT CRITERION 2 
    2. The concept of a bankers acceptance note is explained and an indication given of the requirements for this kind of investment. 

    ASSESSMENT CRITERION 3 
    3. The concept of a treasury bill is explained and an indication given of the requirements for this kind of investment. 

    ASSESSMENT CRITERION 4 
    4. The concept of a negotiable certificate deposit is explained and an indication given of the requirements for this kind of investment. 

    ASSESSMENT CRITERION 5 
    5. The concept of a permissionery note is explained and an indication given of the requirements for this kind of investment. 

    ASSESSMENT CRITERION 6 
    6. The concept of a money market fund is explained and an indication given of the instruments used for investments and the advantages to the smaller investor. 

    SPECIFIC OUTCOME 4 
    Compare interest bearing investments and securities. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. Interest bearing instruments and securities are compared graphically. 

    ASSESSMENT CRITERION 2 
    2. Knowledge of interest bearing instruments and securities is used to create an ideal investment product and motivate why this product would be a good investment option. 

    SPECIFIC OUTCOME 5 
    Demonstrate knowledge and understanding of interest bearing and discount instruments. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The concept of an interest-bearing instrument is explained with examples. 

    ASSESSMENT CRITERION 2 
    2. The concept of a discount instrument is explained with examples. 

    ASSESSMENT CRITERION 3 
    3. Three interest-bearing instruments are compared in terms of liquidity, rate of return and risk. 

    ASSESSMENT CRITERION 4 
    4. The effect of inflation on the real return of an interest-bearing instrument is calculated and demonstrated using an example. 

    SPECIFIC OUTCOME 6 
    Explain different deposit based investments. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The concept of a call deposit is explained and an indication is given of the advantages and disadvantages of this kind of investment. 

    ASSESSMENT CRITERION 2 
    2. The concept of a notice deposit is explained and an indication is given of the advantages and disadvantages of this kind of investment. 

    ASSESSMENT CRITERION 3 
    3. The concept of a fixed deposit is explained and an indication is given of the advantages and disadvantages of this kind of investment. 

    ASSESSMENT CRITERION 4 
    4. The concept of a linked rate is explained and an indication is given of the advantages and disadvantages of call, notice and fixed deposits. 

    SPECIFIC OUTCOME 7 
    Demonstrate knowledge and understanding of money market and capital market investment instruments. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The concept of a money market is explained with examples. 

    ASSESSMENT CRITERION 2 
    2. The concept of a capital market is explained with examples. 

    ASSESSMENT CRITERION 3 
    3. The concept of a bankers acceptance note is explained and an indication given of the requirements for this kind of investment. 

    ASSESSMENT CRITERION 4 
    4. The concept of a treasury bill is explained and an indication given of the requirements for this kind of investment. 

    ASSESSMENT CRITERION 5 
    5. The concept of a negotiable certificate of deposit is explained and an indication given of the requirements for this kind of investment. 

    ASSESSMENT CRITERION 6 
    6. The concept of a promissory note is explained and an indication given of the requirements for this kind of investment. 

    ASSESSMENT CRITERION 7 
    7. The concept of a money market fund is explained and an indication given of the instruments used for investments and the advantages to the smaller investor. 

    ASSESSMENT CRITERION 8 
    8. The concept of a bond is explained with examples. 

    SPECIFIC OUTCOME 8 
    Compare interest bearing investments and equities. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. Interest bearing instruments and equities are compared in a table. 

    ASSESSMENT CRITERION 2 
    2. Knowledge of interest bearing instruments and equities is used to create an ideal investment product and motivate why this product would be a good investment option. 


    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 
    Learners can identify and solve problems in which responses show that responsible decisions using critical and creative thinking have been made in designing an ideal investment product. 

    UNIT STANDARD CCFO COLLECTING 
    Learners can collect, organise and evaluate information when using their knowledge to create an ideal investment product. 

    UNIT STANDARD CCFO COMMUNICATING 
    Learners can communicate effectively using visual, mathematics and language skills in the modes of oral and/or written presentations in explaining concepts, calculating effects of inflation, comparing interest bearing instruments and securities and presenting their ideal product. 

    UNIT STANDARD CCFO DEMONSTRATING 
    Learners are able to demonstrate an understanding of the world as a set of related systems when comparing the risk and return of interest bearing instruments and equities. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    UNIT STANDARD NOTES 
    N/A 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  20638   National Certificate: Collective Investment Schemes  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered"     		 2004-12-05  INSETA 
    Elective  20773   National Certificate: Long Term Insurance  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered"     		 2004-12-05  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.
     
    NONE 


    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.