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Marking Scheme Pages Mpu3253 March 2019

This document contains two sections: Section A contains 60 multiple choice questions worth 1 mark each, and Section B contains 7 structured questions worth between 5-10 marks each for a total of 40 marks. The structured questions cover topics like financial goals, personal balance sheets, risk-return tradeoffs in investments, the 5Cs credit evaluation model, benefits of financial management from a young age, real versus nominal interest rates, and dealing with emotional spending.

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19 views2 pages

Marking Scheme Pages Mpu3253 March 2019

This document contains two sections: Section A contains 60 multiple choice questions worth 1 mark each, and Section B contains 7 structured questions worth between 5-10 marks each for a total of 40 marks. The structured questions cover topics like financial goals, personal balance sheets, risk-return tradeoffs in investments, the 5Cs credit evaluation model, benefits of financial management from a young age, real versus nominal interest rates, and dealing with emotional spending.

Uploaded by

vekelet399
Copyright
© © All Rights Reserved
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Download as DOCX, PDF, TXT or read online on Scribd
Download as docx, pdf, or txt
Download as docx, pdf, or txt
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MS/MPU3253/ March2019

Section A: Multiple Choice Questions (60 Marks)

1. B 21. A 41. A
2. B 22. C 42. A
3. C 23. B 43. B
4. D 24. D 44. C
5. A 25. D 45. D
6. A 26. B 46. C
7. D 27. A 47. A
8. A 28. B 48. C
9. A 29. C 49. C
10. B 30. B 50. A
11. D 31. C 51. C
12. C 32. D 52. A
13. B 33. A 53. B
14. A 34. C 54. A
15. D 35. C 55. B
16. B 36. A 56. D
17. B 37. D 57. D
18. B 38. A 58. A
19. A 39. D 59. C
20. D 40. C 60. B

Note: 1 mark for each answer

Section B: Structured Questions (40 Marks)

1. Setting short-term, mid-term, and long-term financial goals is an important step toward becoming
financially secure. If you aren't working toward anything specific, you're likely to spend more than you
should.
(√ = 1 mark x 5 = 5
marks)

2. A personal balance sheet is a type of financial statement that takes a snapshot picture of the financial
position of an individual on any given day. It shows how financially strong or weak an individual is at
the time.
(√ = 1 mark x 5 = 5
marks)

3. The risk–return spectrum (also called the risk–return tradeoff or risk–reward) is the relationship√
between the amount of return gained on an investment√ and the amount of risk undertaken in that
investment√. The more return sought√, the more risk that must be undertaken√.
(√ = 1
mark x 5 = 5 marks)

Page 2 of 3
MS/MPU3253/ March2019

4. In the 5Cs√ credit evaluation model, the lender will look at the repayment record which will reveal the
credit character√ of a potential borrower. It shows a borrower willingness to pay√. A borrower who has
a satisfactory record√ generally will also perform satisfactorily on the new loan√.
(√ = 1 mark x 5 = 5
marks)

5. Learning to manage money at this stage and being aware√ of the importance√ of starting to save and
making investment at an early age√ and managing your debt can eliminate financial mistakes√ and
promote huge financial benefits for the future√.
(√ = 1 mark x 5 = 5
marks)

6. Unlike the nominal rate, the real interest rate takes the inflation rate√ into account√. To avoid
purchasing power√ erosion through inflation√, investors consider the real interest rate, rather than
the nominal rate√.
(√ = 1 mark X 5 = 5
marks)

7. Emotional spending occurs when an individual spends money for the sole purpose√ of improving√ a
mood√.

The first step in dealing with emotional spending is to acknowledge√ that you are doing it√ and find
something else to use as an emotional boost√ or stress reliever√. Research healthy activities√ that
make you feel better√, like exercise, reading√,

(√ = 1 mark x 10 = 10
marks)

Page 3 of 3

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