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 year’s 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
couldn’t afford the full bag of oranges but half, and only 6
drinks after the other expenses.
1. From above, what is Emma’s nominal income?
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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. Eyram’s 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
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………………………………………………………………………………………………………
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6. Suggest three financial strategies that you believe if Emma
could adopt can help her
Minimize the effect of the inflation on her living
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………………………………………………………………………………………………………
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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. Sarah’s 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 year’s 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 she’s out going, and loves talking
with people, meanwhile she is thinking of taking a position as a
banker but she’s 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