SECTION A: READ THE PASSAGE AND ANSWER QUESTIONS 1-3

Emma, a monthly salaried worker, received 1,300 cedis as her net salary; she heard that this years inflation is at 18%. This situation caused prices to soar so high that she complained about everything she buys. In the previous year she was able to buy herself, dresses, a basket of foodstuffs, a small bag of oranges, a dozen of drinks and her transportation. However, this year, she couldnt afford the full bag of oranges but half, and only 6 drinks after the other expenses.

1. From above, what is Emmas nominal income?

2. What is her real income?

3. What is the difference between her real incomes for this year and last year?

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4. How much does Eyram need now to be able to have all the things she used to have previously?

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5. Eyrams salary had increased by 200 cedis this year, with the inflation remaining same, would she still be able to purchase all the things she used to buy in the previous year?

Briefly explain your answer

6. Suggest three financial strategies that you believe if Emma could adopt can help her

Minimize the effect of the inflation on her living

SECTION B: CIRCLE THE CORRECT ANSWERS

7. Interest earn on another interest is called?

a. Simple interest

b. Multiple interests

c. Compound interest

d. All of the above

8. The lump sum of future value of money to be received today is termed

a. Future value

b. Present value

c. Compound value

d. Simple value

9. Sarahs boyfriend requested that they should go out to the movies, but she had a mid-semester test the next day, she was in a fix as to whether to go or not. What economic concepts are applicable in her situation?

a. Choice making & Scale of Preference

b. Choice making & Opportunity Cost

c. Scale of Preferences & Opportunity Cost

d. None of the Above

10. While reading this years budget, the finance minister mentioned that there were economic downturns this year compared to last year. What does he mean by this statement?

a. The economy was at the trough

b. The economy was at the peak

c. The economy was at the declining stage

d. The economy was at the growth stage

11. Ante Kokor has to pay for her child school fees being a single mother, and see to the rent as well as their meals for the week. These are so pressing that she cannot wait till the month ends for her salary. She decided to sell some of her personal assets. Which of the following best describes her action?

a. Liquidity

b. Opportunity cost

c. Choice making

d. Marginal Utility

12. Ruth is so worried because last year her salary was able to buy her shoes, food, pay her rent and transportation until her next pay. However, this time she was only able to pay the rent, transportation and food but had to ask a friend for a loan before her next pay cheque. What is accounting for this situation?

a. The increase and decrease of prices

b. The increase in the general level of prices

c. The persistent increase or decrease in the general level of prices

d. The persistent increase in the general level of prices

13. Ruby graduated from Family and Consumer Sciences Department, she was successful in getting a job in line with her career aspirations. On receiving her first salary, she could take care of her expenses, but she decided only to take care of the pressing ones and save something out of her salary. Which of the following best describes her action?

a. She is striving to be financially prudent

b. She is striving to be financially responsible

c. She is striving to be financially successful

d. She is striving to be financially accountable

14. Which of the following best describes the economic management by the government?

a. Business cycle

b. Economic management

c. Economic cycle

d. Management cycle

15. Choose the odd one out

a. Resume

b. Cover letter

c. Interview skills

d. Work experience

16. A resume can be organize in the following ways EXCEPT?

a. Chronological format

b. Skills format

c. Methodological format

d. Functional format

17. The main purpose of financial planning is to

a. Enable an individual to have a good life

b. Have a high standard of living

c. Bridge the gap between desired and expected living standard

d. Enable the individual to have some savings

18. Which of the following best describes choice making

a. Selecting from different kinds and types

b. Applying your free will when choosing a good or commodity

c. Selecting the kind of good that satisfies you most

d. None of the above

19. Which of the following is NOT a benefit an individual could derive from having knowledge in personal finance?

a. Students and individuals gain knowledge in savings

b. Students and individuals can make good investment decisions

c. Students and individuals would know how to retire

d. Students and individuals would have a better chance of dealing with financial challenges they face

20. Which of the following concepts is the most important concept in personal finance?

a. Time Value of Money

b. Opportunity Cost

c. Marginal Utility

d. None of the above

21. Emefa, believes that shes out going, and loves talking with people, meanwhile she is thinking of taking a position as a banker but shes not certain which position to specifically apply for. How best can you describe the state in which she is in?

a. Drawing up a career plan

b. Assessing the position that will fetch more

c. Assessing her values and interest

d. None of the above

22. An income that is not spent on current consumption is termed as

a. unspent income

b. investment

c. banking

d. saving

23. An economy at the peak means

a. the expansion stage of that economy has ended

b. the expansion stage of that economy is about ending

c. the expansion stage of that economy is at its highest

d. the expansion stage of that economy is at its lowest

24. Select the odd one out

a. Funds allocation

b. Borrowing

c. Internal auditing

d. Tax payment

25. An individual who is able to avoid financial mistakes and could take advantage of financial opportunities could be described as being

a. Financially knowledgeable

b. Financially successful

c. Financially responsible

d. Financially happy

26. Which of the following best describes an individual who is financially successful?

a. Having regular income

b. Having extra income to save

c. Taking advantage of various financial benefits available

d. All of the above

24. Akosua wants has graduated and thinking of what job she should go for. You are her friend which of the following would you suggest she adopts?

a. She should consider the job that pays well

b. She should look at her strengths and what she loves doing

c. She should look out for flexible jobs to have time for herself

d. She should establish her own business

25. Career planning becomes most important in which of the following economies?

a. An economic at its peak

b. A growing and expanding economy

c. An economy at the trough

d. A slowing economy

This course is Public Finance