Mastering Income Allocation & Financial Planning

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Questions and Answers

What is the K curve?

  • A curve that represents the movement of currency value chain
  • A graph that illustrates the impact of interest and inflation on consumers
  • A graph that shows the relationship between income allocation and financial planning
  • A curve that depicts the widening gap between the rich and the poor (correct)

What does the Currency Value Chain (CVC) represent?

  • The movement of manufacturing from China to India
  • The absolute return that an economy can give to an individual (correct)
  • The investor's perspective of interest rate and inflation
  • The minimum return on capital for a particular business

What is the Capital App. % for India?

  • 14.56%
  • 9.75% (correct)
  • 3.25%
  • 4.81%

What is the interest rate in the USA?

<p>5.25% (D)</p> Signup and view all the answers

Why is the Currency Value Chain (CVC) of India better than that of the USA?

<p>Due to less opportunities for growth in the USA compared to developing India (A)</p> Signup and view all the answers

What does the K curve represent?

<p>The rich will get richer and the poor will get poorer (A)</p> Signup and view all the answers

What does the Currency Value Chain (CVC) represent?

<p>The absolute return that an economy can give to an individual (B)</p> Signup and view all the answers

Why is the Currency Value Chain (CVC) of India better than that of the USA?

<p>India has more opportunities for growth compared to the USA (B)</p> Signup and view all the answers

What is the Capital App. % for India?

<p>9.75% (B)</p> Signup and view all the answers

What does the CVC give the first rule of investing?

<p>The minimum return on capital for a particular business (D)</p> Signup and view all the answers

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