KMNBNFM01 TA 1

Name of student

Father's Name

Class Roll no

Section

• A
• B
• C
• D

1. If inflation is 8%, how much does your money need to grow by to ensure you can buy the same basket of goods and services next year?

• 6%
• 4%
• 8%

Which of the below is an asset class?

• Bonds
• Interest
• Bonus

Which definition of compound interest is correct?

• he process of generating earnings on an asset's reinvested earnings.
• The process of earning interest on cash savings.
• The process of adding to one's stock portfolio over time.

Businesses issue shares in order to:

• Drive demand
• Raise capital
• Reduce tax exposure

Which asset class is generally considered the most conservative?

• Bonds
• Equities
• Property
• Cash

If you save R10 000 at a return of 6%, and withdraw the interest every year, at the end of 10 years you'll have:

• R10 000
• R16 000
• R8 000