CONFIDENTIAL NOVEMBER 2015 / SET A / PFN1123

FINAL EXAMINATION

COURSE : PERSONAL FINANCE MANAGEMENT

COURSE CODE : PFN 1123

DURATION : 03 HOURS

INSTRUCTION TO CANDIDATES:

1. This question paper consists of THREE (3) parts: PART A (04 questions)
PART B (02 questions)
PART C (03 questions)

2. Answer ALL questions from PART A, PART B and PART C

i. Answer PART A in the Objective Answer Sheet.

ii. Answer PART B in the True/False Answer Sheet.

iii. Answer PART C in the Answer Booklet provided.

3. Do not bring any material into the examination hall unless permission is given by the invigilator.

4. Please write your answer using a ball-point pen

MARKING SCHEME
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CONFIDENTIAL NOVEMBER 2015 / SET A / PFN1123

PFN 1123
PART A: MULTIPLE CHOICE QUESTIONS

1. A
2. A
3. D
4. D

PART B: TRUE AND FALSE QUESTIONS

1. F
2. F

PART C: SHORT ESSAY QUESTIONS

QUESTION 1

Explain TWO (2) ways of paying a housing loan. (6 marks)

Answer;

a) graduated payment (3marks)

i. Lower installment payments at the beginning of the loan.

ii. the amount will gradually increase over time
iii. Useful for person who had just started working and the salary increase
over the years.

b) partial prepayment of the outstanding loan (3marks)

i. Shortening the loan tenure by making partial prepayments.

ii. If done during the early years of the loan tenure, the interest charge can
be reduced.

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CONFIDENTIAL NOVEMBER 2015 / SET A / PFN1123

iii. Amount to pay may be restricted.

(3 marks x 2 relevant answer with good explanation = 6 marks)

QUESTION 2

Explain FOUR (4) useful tips in buying your car (6 marks)

Answer;

a) Shop around for a car that is reliable. Ask for advice from your parents, family
members or friends. (1.5 marks)

b) Work out the budget based on your monthly salary (1.5 marks)

c) If you decide to apply for a car loan, shop around for a package based on
affordability (1.5 marks)

d) Do not use your credit card to pay for a down-payment. (1.5 marks)

(1.5 marks x 4 relevant answer with good explanation = 6 marks)

QUESTION 3

Briefly explain what happens when you default on your loan (6 marks)

Answer;

a) Financial institution take legal proceedings (1.2 marks)

b) Repossess and sell the house (1.2 marks)
c) Foreclose and sell the house (1.2 marks)
d) File debtor summons (1.2 marks)
e) File a bankruptcy order for debt rm30,000 and above (1.2 marks)

(1.2 marks x 5 relevant answer with good explanation = 6 marks)

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