- 20 Marks
MCBFI – APR 2023 – L4 – Q4 – Differences Between Savings, Investment, Speculation, and Features of Government Bonds
Explain the differences between savings and investment, investment and speculation, and outline the features of a government bond in the context of Ghana's DDEP.
Question
The current Domestic Debt Exchange Programme (DDEP) and the pronouncement of the Finance Minister has really exposed the vulnerability and the potential weaknesses in the savings and investment culture of the ordinary Ghanaian. Some notable personalities including the Former Chief Justice. Madam Sophia Akuuffo have publicly expressed their opinions on the DDEP, which was very unopular with Middle Class and some Parliamentarians.
You are required to explain:
(a) The difference between Savings and Investment (6 marks)
(b) The difference between Investment and Speculation (6 marks)
(c) Features of a Government Bond (8 marks)
(Total: 20 marks)
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