Question 1
Dominic is in his 40s and lives in a two bedroom flat in Blackburn. He works at the local council. When he bought the flat in April 2019 the mortgage broker talked him through repayment and interest-only mortgages. He decided to use his savings as a deposit and chose a repayment mortgage, which by April 2021 was standing at £83,000. The market value of his flat had fallen by 2% over this time period on the original purchasing price of £95,000.
In April 2021 Dominic earns a net monthly income of £1,600 and his expenditure has averaged £1,500 a month over the last two years. In April 2021 a personal loan to conduct initial refurbishment on the flat is down from £1,500 to £800, but his current account balance has dropped to zero and he has an overdraft on his current account of £1,300. Meanwhile his savings account holds just £50. He now owes £1,800 on a credit card. His cash holdings have dropped to £30. The rest of his balance sheet has not changed since April 2019.
Dominic is now reviewing his finances.
Table 1 shows his balance sheet and financial ratios in April 2019.
Table 1 Dominic’s household balance sheet – April 2019
April 2019
Assets (Total) 96,400
Liquid assets 1,400
Cash 100
Current account 1,000
Instant access savings account(s) 300
Other liquid assets 0
Other assets 95,000
Home 95,000
Liabilities (Total) 86,750
Short-term liabilities 250
Overdraft 0
Credit card 250
Other short-term liabilities 0
Other liabilities 86,500
Personal loans 1,500
Mortgage 85,000
Ratios
Net worth / wealth 9,650
Current asset ratio 5.60
Leverage ratio 89.99
1.1 Using the information provided in Table 1, complete Dominic’s balance sheet for April 2021. (4 marks)
1.2 Explain the factors Dominic might have considered in choosing a repayment mortgage over an interest-only mortgage in 2019. (3 marks)
1.3 Using the financial ratios and other relevant information, compare Dominic’s financial situation in April 2019 and April 2021. (4 marks)
1.4 Briefly explain two other possible actions Dominic could take to improve his financial situation. (4 marks)
Question 2
Anita is living at home with her mother. But Anita has now found a job and is planning to move into her own flat. She wants to buy a flat four years from now, knowing that she will need a deposit of at least £9,000 in order to do so. Anita has £1,500 in a savings account.
2.1 If Anita uses all of her savings and saves £110 per month, what rate of return will Anita need to reach her target of £9,000 after four years? (3 marks)
2.2 Anita has seen that shares (equities) in a particular internet start-up company have given an 18 per cent return over the past two years. She is considering using all of her savings into buying this company’s shares. Give two reasons why putting all her savings into this one company’s shares might not generate anything close to the 18% return they’ve achieved over the past two years.(4 marks)
2.3 Briefly explain another way that Anita could save the amount of her deposit if she is risk-averse or doesn’t have much risk capacity. (4 marks)
2.4 How will Anita’s efforts to save for a deposit be affected if there is a fall in interest rates which causes a rise in house prices? (4 marks)
Question 3
Table 2 shows some data related to crime in different areas of England. When answering the questions that follow, assume that the rates of offences in each area in the year ending March 2020 are valid indicators of the current annual risks of these offences.
Table 2 Rates of police recorded crime for burglary and violence against the person for selected areas of England and Wales, year ending March 2020
Region Burglary Violence against the person
Cheshire 4.3 per thousand of population 36.2 per thousand of population
Durham 0.65% 4.16%
Hampshire 1 in 179 of population 1 in 33 of population
South Wales 0.0046 0.0293
Source: adapted from Office for National Statistics (2020)
3.1 Transform the figures in Table 2 into one comparable measure of risk by expressing each probability as a decimal, rounded to four decimal places. (3 marks)
3.2 If crimes categorised as burglary and violence against the person are mutually exclusive, what is the chance (expressed in percentage) of being victim of either crime next year in Cheshire? (3 marks)
3.3 Give two reasons why a particular household in South Wales may in fact be at a lower risk of burglary than the probability shown in the table. (4 marks)
3.4 Briefly explain in your own words the meaning of moral hazard, and identify two ways in which an insurer can design a policy covering burglary to reduce the risk of moral hazard. (5 marks)
Compelling correspondence is essential to the achievement all things considered but since of the changing idea of the present working environments, successful correspondence turns out to be more troublesome, and because of the numerous impediments that will permit beneficiaries to acknowledge the plan of the sender It is restricted. Misguided judgments.In spite of the fact that correspondence inside the association is rarely completely open, numerous straightforward arrangements can be executed to advance the effect of these hindrances.
Concerning specific contextual analysis, two significant correspondence standards, correspondence channel determination and commotion are self-evident. This course presents the standards of correspondence, the act of general correspondence, and different speculations to all the more likely comprehend the correspondence exchanges experienced in regular daily existence. The standards and practices that you learn in this course give the premise to additionally learning and correspondence.
This course starts with an outline of the correspondence cycle, the method of reasoning and hypothesis. In resulting modules of the course, we will look at explicit use of relational connections in close to home and expert life. These incorporate relational correspondence, bunch correspondence and dynamic, authoritative correspondence in the work environment or relational correspondence. Rule of Business Communication In request to make correspondence viable, it is important to follow a few rules and standards. Seven of them are fundamental and applicable, and these are clear, finished, brief, obliging, right, thought to be, concrete. These standards are frequently called 7C for business correspondence. The subtleties of these correspondence standards are examined underneath: Politeness Principle: When conveying, we should build up a cordial relationship with every individual who sends data to us.
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It is a unique cycle that oversees force, closeness and limits, cohesiveness and flexibility of route frameworks, and makes pictures, topics, stories, ceremonies, rules, jobs, making implications, making a feeling of family life An intelligent cycle that makes a model. This model has passed ages. Notwithstanding the view as a family and family automatic framework, one of the greatest exploration establishments in between family correspondence centers around a family correspondence model. Family correspondence model (FCP) hypothesis clarifies why families impart in their own specific manner dependent on one another ‘s psychological direction. Early FCP research established in media research is keen on how families handle broad communications data. Family correspondence was perceived as an exceptional scholastic exploration field by the National Communications Association in 1989. Family correspondence researchers were at first impacted by family research, social brain science, and relational hypothesis, before long built up the hypothesis and began research in a family framework zeroed in on a significant job. Until 2001, the primary issue of the Family Communication Research Journal, Family Communication Magazine, was given. Family correspondence is more than the field of correspondence analysts in the family. Examination on family correspondence is normally done by individuals in brain science, humanism, and family research, to give some examples models. However, as the popular family correspondence researcher Leslie Baxter stated, it is the focal point of this intelligent semantic creation measure making the grant of family correspondence special. In the field of in-home correspondence, correspondence is normally not founded on autonomous messages from one sender to one beneficiary, yet dependent on the dynamic interdependency of data shared among families It is conceptualized. The focal point of this methodology is on the shared trait of semantic development inside family frameworks. As such, producing doesn’t happen in vacuum, however it happens in a wide scope of ages and social exchange.
Standards are rules end up being followed when performing work to agree to a given objective. Hierarchical achievement relies significantly upon compelling correspondence. So as to successfully impart, it is important to follow a few standards and rules. Coming up next are rules to guarantee powerful correspondence: clearness: lucidity of data is a significant guideline of correspondence. For beneficiaries to know the message plainly, the messages ought to be sorted out in a basic language. To guarantee that beneficiaries can without much of a stretch comprehend the importance of the message, the sender needs to impart unmistakably and unhesitatingly so the beneficiary can plainly and unquestionably comprehend the data.>
