Question

SECTION C: FILL IN THE BLANK SPACES

26. What is the name given to the document that shows your net worth

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27. State one main difference between a career and a job

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28. State two advantages you will derive from keeping financial records

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29. Principal times rate times time gives the

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30. In finding out the value of a future amount to be received in today’s value terms+, you would have to

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31. State two advantages of the taking personal finance course

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32. Matilda priced her shoes and bags and other personal belongings she owns and they totaled up to 3,000 cedis, her friend gave her 1,500 cedis for her to keep on her behalf, her brother owes her 1,200, and she had to pay the seller of shoes, 300 cedis. How much is Matilda’s net worth?

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33. If Matilda (in question 32 above) remembers that she has a savings of 1000 cedis, but her rent 2,500 cedis is due. Will her net worth remain the same?

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34. Utility could be described as

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35. State one distinguishing feature between utility and marginal utility

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36. Distinguish between real and nominal income

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37. Why should you consider Marginal Cost (MC) and Marginal Utility (MU) in making financial decisions?

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This course is Public Finance

Answer 1

Solutions:

26. Balance Sheet. It is a statement of all assets, liabilities and residual equity which is known as net worth.

27. A job is an economic activity undertaken by an individual to earn his livelihood whereas career is an aggregation of multiple jobs, learnings and experience derived from those jobs that helps the individual to move forward in terms of role, pay, personal development, business sense etc. which is generally thought of as planned or sought out by him.

28. a. Presentation of results of financial activities and financial position of the business in a systematic, clear and understandable manner.

b. Provides meaningful information for decision making not only to internal management but also external stakeholders for their own decisions.

29. Interest. Formula for interest is Principal x Interest rate x time or P x r x n

30. Discount it to its present value