Question

1. A resume’ can be organize in the following ways EXCEPT?
   1. Chronological format
   2. Skills format
   3. Methodological format
   4. Functional format
2. 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

3. 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

4. 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   

5. 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

1. A resume’ can be organize in the following ways EXCEPT?
   1. Chronological format
   2. Skills format
   3. Methodological format
   4. Functional format
2. 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

3. 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

4. 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   

5. 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

Answer 1

(1) A resume’ can be organize in the following ways EXCEPT :- (c) Methodological format

In general, a resume can be written in the following four formats :-

• Chronological format - In this type of resume format, the emphasis is given on the time element i.e. the qualification details & the work experience of the candidate are listed in the chronological order, starting from the latest or current one to the earliest one. This gives the recruiter an instant idea about the current employment and the latest qualification of the potential candidate.
• Functional format - In this type of resume, emphasis is particularly given on the skills & experience of the candidates instead of the date/chronology of the employment. The employment history is listed under the highlighted skills & experiences. This type of resume is preferable when there is a gap in the employment or education history.
• Combination format - In this format, a detailed work experience is given emphasizing upon both the skills of the candidate as well as the chronological order of the work history.
• Targeted format - This is a tailor made resume, where the candidate highlights his/her skills, work experience, education details & achievements keeping in mind the particular needs of the prospective job opening.

(2) The main purpose of financial planning is to :-

(c) Bridge the gap between desired and expected living standard

Financial planning can be defined as setting up of personal financial goals both and make a plan for achieving those goal in due time. It is also about meeting up both the short term financial goals (like going for a vacation or buying a comfort good) & the long term financial goals (like buying car, houses, children's higher education expenses, old age medical expenses etc.). Personal financial planning is all about managing the life time savings & investments well so that one can retire comfortably without having to depend much on the social security or pension plans. A good financial plan needs to be flexible with time and thus will help to achieve a desired standard of living. The financial planning helps to improve the standard of living of a person over time. The standard of living can be defined as the necessities, luxuries & lifestyle desired by an individual to achieve over his/her lifetime.

(3) Choice making is described as :- (c) Selecting the kind of good that satisfies you most

Choice can be simply defined as the decision making ability of an individual from the given set of alternatives. Economics is all about this science of choice making by an individual, family, institution or even a government. Since the human wants & demands are unlimited but the resources available to satisfy those demands, are scarce and limited. Hence, economics is basically making the choices or decisions regarding which goods & services to produce for consumption to satisfy the human wants & demands most while making the optimum utilization of the available resources. Also the every choice we make from a set of alternatives, there is an opportunity cost associated i.e. the cost of foregoing the next best alternative. Hence, choice making is all about selecting the best alternative that maximizes satisfaction out of limited set of resources.

(4) (c) Students and individuals would know how to retire - is not a benefit an individual could derive from having knowledge in personal finance.

Individuals who learn the concepts of personal finance from their early student life are more likely to handle their savings & investments better in the future. This because personal finance is all about having a cultivated knowledge of how to meet the personal financial goals both short term & long term. It helps an individual to chalk out a detailed as well as flexible financial plan which helps him/her to manage money over the lifetime. Personal finance include developing strategies for savings & investments, budgeting, banking, credit management, mortgage payments, retirement planning, and meeting up large future expenses like housing, children's education, medical bills etc. Personal financial planning if done properly from the early life would help an individual to retire comfortably and maintain a desired standard of living without having to bother much about by the inflationary pressure in the future.

(5) (a) Time Value of Money is the most important concept in personal finance.

The time value of money is probably the most important determinant in about all the business, finance & economics related decisions. companies need to consider time value of money while making investment decisions & an investor needs to consider it while devising the best portfolio mix of securities that maximizes return and minimizes the risk.
Time value of money the value of a unit of money is different in different periods of time. The value of a sum of money received today is certainly more than the value of that sum received in the future. For example, $100 worth more now than 10 years later. Hence, the present value of a dollar received today is more than its future value. An investor would prefer current receipts to future recepts. The main reason behind this is the reinvestment opportunity associated with the funds received early. A $100 invested now would earn a rate of return per year or interest, which has to be foregone if the same $100 received after a year. The time value of money is thus geenrally, expressed in terms of a rate of return or the discount rate. The time value of money is also associated with the opportunity cost i.e. the cost of foregoing the next best alternative investment. Hence, time value of money is an important concept for personal finance, because a good understanding of it would enable a person to make prudent decisions regarding his/ her investments and savings.