Chapter 4 Finance
4.1 The Financial Cycle
Key Skills:
- f1 Be able to decide what information is needed to address a financial situation.
- f2 Know how to obtain the necessary information.
- f3 Be able to process the information to provide one or more possible solutions.
- f4 Be able to decide which, if any, of the solutions are appropriate.
4.2 Percentages
Key Skills:
- f5 Be able to do calculations involving percentages in context; the use of an index number to compare a number or value to that in a base year.
- f6 Know how to use percentages to work with appreciation or depreciation.
- f7 Be able to work out an average annual percentage growth (or reduction) rate for a given change over a period.
4.3 Foreign Exchange
Key Skills:
- f8 Be able to use foreign exchange rate information to make calculations, including calculations for currency exchange with commission or a fee.
- f9 Be able to decide which foreign exchange rate is most advantageous for a particular exchange without doing the calculations.
4.4 Costing
Key Skills:
- f10 Be able to work out the regular outgoing cost for a financial decision.
- f11 Be able to find relevant information from tables.
- f12 Be able to use a spreadsheet to cost a project or business proposal, recognising that some costs are more predictable than others over time.
- f13 Be able to use a demand curve as a model for the relationship between price and demand.
- f14 Understand and use the language of finance.