Unit 3: Public Finance questions and answers

Public Finance: sample questions with answers

What unit 3 covers

Questions follow the book: Business, Secondary, Form Four, Student Book.

1. Lesson 1: Public Finance

   • Scope and Function of Public Finance
   • Public Finance
   • Gruber's Four Questions
   • Public Sector
   • Market Failure
   • Stabilization and Redistribution

2. Lesson 2: National Accounts

   • National Accounts and Economic Activity
   • National Accounts and Aggregate Values
   • Main Characteristics of National Accounts
   • Basic Concepts and Variables of National Accounts
   • Gross National Income
   • Gross Saving, Gross Capital Formation and Net Lending
   • Changes in Net Worth

3. Lesson 3: Money and Banking

   • What is Money?
   • Functions of Money
   • Characteristics of Money
   • Types of Money
   • Basic History of Money
   • Banking Services
   • Electronic banking
   • Types of money in Somalia
   • Cost comparison and cost-benefit analysis
   • Money supply
   • Calculating future expenses
   • The Somali Central Bank
   • Monetary policy tools
   • Central Bank regulation
   • Budget
   • Functions of the Central Bank
   • Types of banks
   • Monetary policy
   • Changing discount rate
   • Lesson 3 questions

4. Lesson 4: Evaluation of Money

   • Evaluation framework
   • Evolution of money
   • Barter and its difficulties
   • Definition of money
   • Modern approach
   • Functions of money
   • When money ceases to perform its functions
   • Essentials of good money
   • Value for Money
   • Lesson 4 questions