Formal Assessment Task

Grade 7 Term 2
MID-YEAR CONTROLLED TEST

Marks: 100
Duration: 90 min.

Date:

Name and Surname: Grade 7: ________

INSTRUCTIONS:

1. All questions are COMPULSARY.

2. Write neatly and legibly.

3. Read through the questions carefully and make sure that you allocate
enough time for each question.

4. A calculator is permissible.

5. This paper consists of 3 section: Section A (Short Questions),

Section B (The Economy) and Section C (Financial Literacy)

Question 1 2 3 4 5 6 7 8 9 10 11 TOTAL

Maximum 10 10 10 10 10 9 15 3 5 8 10 100
mark

Mark obtained

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SECTION A

QUESTION 1: MULTIPLE CHOICE

1.1 Various options are given as possible answers. Choose the correct answer and
UNDERLINE the correct option e.g. A. markets
B. eating

1.1.1 One of the ways of solving problems to trade in the early traditional societies, was to

A. Courier companies
B. Medium of exchange
C. Barter
D. E-wallet

1.1.2 A document that legally binds a person to pay another person a specific amount of
money within a specified time is called…

A. cheque
B. buying note
C. promissory note
D. stock trading

1.1.3 ….is the money received by business after selling goods.

A. Drawings
B. Liability
C. Capital
D. Income

1.1.4 Which of the following is an example of a community need?

A. Soft drink
B. Watch
C. Bicycle
D. Library

1.1.5 …is the money to start a business.

A. Capital
B. Finance
C. Investments
D. Expense

(2 X 5)
[10]

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QUESTION 2: MATCHING ITEMS

Match the statements in Column A with answers in column B. Write only the letter of the
correct answer next to the question number. E.g. 2.2.6 - H

COLUMN A COLUMN B ANSWER

2.2.1 Money systems of different A. Goods 2.2.1
countries.
2.2.2 Things that you can touch that are B. Reuse 2.2.2
produced to satisfy needs and
wants.
2.2.3 Are things that you cannot touch, C. Standard of living 2.2.3
and that people do for others.
2.2.4 Refer to the level of wealth, comfort D. Currencies 2.2.4
and material goods someone has.
2.2.5 To use something over and over. E. Services 2.2.5

(2x5=10)
[10]
QUESTION 3: TRUE OR FALSE

State whether the following statements are true or false. Write only true or false on the
space provided.
3.1 Trading is the exchange of goods for money.

3.2 Wants are things that people can live without. _______

3.3. Manufacturing business make money from buying and selling.

3.4 Money is regarded as a scarce commodity, medium of exchange and measure

of value. ___________

3.5. Socio-economic imbalances refer to large differences in standard of living

of people in a country. ___________________
(2X5=10)
[10]

TOTAL SECTION A: 30

3|Page
SECTION B: ECONOMY

QUESTION 4

Use the list of words given below to complete the following statements. Write the missing word at
the end of the sentence on the space provided.
consumers, free goods, clients, water

economic goods, professional, manufacturing, customers

self-sufficient, unemployment, overpopulation, Constitution, poverty

4.1 Factories and bakeries are examples of … businesses.

4.2 Doctors, nurses, teachers and lawyers render …... services to clients.

4.3 Air, sunlight and sand are examples of …

4.4 Goods that command a price are known as …

4.5 People who buy goods for use are called …

4.6 Challenge in rural areas.

4.7 People who live in traditional societies are………. farmers. _______________________

4.8 Challenges in urban areas.

4. 9 All the laws governing a country.

4.10. Resources that can run out and can’t be replaced.

(1x10=10)
[10]

4|Page
QUESTION 5

Look at the following picture before answering the questions.

5.1 Money is a medium of exchange. List 3 characteristics money should have to fulfil this
function. (3x2=6)

5.2 Money has four roles or functions. Explain the function “store of value”. (2)

5.3 Underline the correct word in brackets:

(Wampum / Cowry shells) was one of the first forms of money in
around 1200 BC. (2)
[10]

TOTAL SECTION B: 20

5|Page
SECTION C: FINANCIAL LITERACY

QUESTION 6

Complete the following:

6.1 Accounting is the systematic _______________ of financial

___________________of a business in ___________________ of

____________________. (4)

6.2 To start a business, the business owner needs ________________________. (1)

6.3 Study the following example. Calculate the difference and indicate whether the
business made a profit or loss.

Nr Income Expenses Difference Profit or loss

E.g. R300 R100 R200 Profit

1 R10 200 R6 400

2 R5 200 R7 800

(4x1=4)
[9]

6|Page
QUESTION 7

Read the following case study and prepare the Statement of Net Worth for Xolile
Khosa on 15 March 2021.
Xolile Khosa gave you the following information and asked you to prepare his Statement of Net
Worth.
Property R150 000 Clothing accounts R4 500
Car R75 000 Furniture R 12 3000 Credit Cards R30 000
Savings Account R4 000 Money in bank R1 670 Cell Phone R2 100
Computer R 12 400 Loan from uncle R 2000

XOLILE KHOSA STATEMENT OF NET WORTH R

Total Assets R

Total Liabilities R

NET WORTH R

(1x15=15)
[15]

7|Page
QUESTION 8

8.1. Define the term “budget” in your own words. (3)

[3]

QUESTION 9

Explain the following concepts:

9.1 Income (1)

9.2 Expenses (1)

9.3 Profit (1)

9.4 Loss (1)

9.5. Transaction (1)

(1X5=5)
[5]

8|Page
QUESTION 10

Mr. I.N. Vestor is the owner of a successful supermarket. He noticed that there is some
excess money in the business’ bank account and want to explore some investment
opportunities. His broker suggested different options. He was thinking that he can rather
just save some money.

10.1 Provide a brief description for the following investment opportunities. (2x2=4)

Investment options: Description

1 Invest in property

2 Notice deposits

10.2 Explain the difference between the “savings” and “investments”. (2x2=4)

[8]
QUESTION 11

Review Alice’s Hairdressers business budget for June 2021 and answer the questions that
follow.

Alice Hairdressers
Cash Budget for the period June 2021
June

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RECEIPTS
Current income 12 800
TOTAL RECEIPTS 12 800
PAYMENTS
Rent expense 1 500
Water and electricity 550
Wages 1 800
Material costs 600
Advertisements 150
Salaries 6 000
Telephone 400
Equipment
TOTAL PAYMENTS 11 000
Surplus 1 800
Bank Starting Balance 4 200
Bank Closing Balance 6 000

11.1 How much is Alice’s income for the month of June 2021? (1)

11.2 How much is Alice’s expenses for the June 2021? (1)

11.3 Does Alice have any money left for the month? If so, how much? (2)

11. 4 Tabulate the difference between wages and salaries. (4)

Wages Salaries

11.5 Make ONE suggestion on how Alice can increase her profit. (2)

TOTAL SECTION C: 50
GRAND TOTAL: 100

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 Formal Assessment Task
Grade 7 Term 2
MID-YEAR CONTROLLED TEST

Marks: 100
Duration: 90 min.

MARKING GUIDELINE

SECTION A:

QUESTION 1:MULTIPLE CHOICE

1.1.1 C√√
1.1.2 C√√
1.1.3 D√√
1.1.4 D√√
1.1.5 A√√ (2x5=10)

QUESTION 2: MATCHING ITEMS

2.2.1 D- Currencies√√
2.2.2 A -Goods√√
2.2.3 E-Services√√
2.2.4 C-Standard of living√√
2.2.5 B-Reuse√√ (2 x5=10)

QUESTION 3 TRUE OR FALSE

3.1 True√√
3.2 True√√
3.3 False√√
3.4 True√√
3.5 True√√ (2X 5=10)
TOTAL SECTION A: 30

SECTION B: ECONOMY
QUESTION 4

4.1 Manufacturing√
4.2 professional√
4.3 free goods√
4.4 economic goods √
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4.5 consumers√
4.6 poverty√
4.7 self-sufficient√
4.8 overpopulation√
4. 9 Constitution√
4.10. water√ (1x10=10)
[10]

QUESTION 5

5.1 durable√√ portable√√, divisible√√, homogenous, generally accepted.

(Any 3 for 2 marks each) (6)
5.2 It retains it value for a long period of time. √√ (2)
5.3 (Wampum / Cowry shells√√) (2)
[10]
TOTAL SECTION B: 20

SECTION C: FINANCIAL LITERACY

QUESTION 6

6.1 recording√, transactions√, books√, accounts√ (4X1=4)

6.2 capital√ (1)

6.3
Income Expenses Difference Profit or loss
E.g. R300 R100 R200 Profit
1 R10 200 R6 400 R3800√ profit√
2 R5 200 R7 800 R-2600√ loss√

(4X1=4)
[9]

QUESTION 7

XOLILE KHOSA STATEMENT OF NET WORTH R

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Property 150 000√

Car 75 000√

Furniture 123 000√

Savings account 4 000√

Money in bank 1 670√

Computer 12 400√

Cell phone 2 100√

Total Assets 368 170√√

Clothing account 4 500√

Loan to uncle 2 000√

Credit cards 30 000√

Total Liabilities R36 500√

NET WORTH R331 670√√

(1x15=15)
[15]
QUESTION 8

8.1. A budget is an estimate or plan√ of the money that you will receive √and how you will
spend it over a specific period in the future. √ (3)
[3]

QUESTION 9

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9.1 Income: The money you receive from selling goods, providing services or investing
your money. √

9.2 Expenses: The money you spend to buy goods or services provided by someone else.
√

9.3 Profit: When income is more/ higher than the expenses. √

9.4 Loss: When expenses are more than the income. √

9.5 Transaction: The act of buying or selling. √

(1x5=5)
[5]
QUESTION 10
10.1

Investment options: Description

1 Invest in property A business can purchase a property for the
business or to rent to other businesses or
people and receive income from it. OR the
value of the property will increase over a few
years, which will increase the business’
investment.
(Any other correct explanation, any 1 correct
statement for 2 marks)

2 Notice deposits This account at the bank offers a higher rate of

interest, but notice must be given before money
can be withdrawn.  OR Notice could be 30,
32 or 60 days. The rate of interest offered will
depend on the notice period. 
(Any other correct explanation, any 1 correct
statement for 2 marks)

10.2 Savings: Over a short period of time√√, savings are normally used to pay for
unexpected expenses,√√ money put away for a specific goal
(Any other correct and relevant explanation for 2 marks)
Investment: Over a longer period of time√√, you buy a valuable item like a property or
painting√√, it will generate an income over the long run√√
(Any other correct and relevant explanation for 2 marks) (4)
[8]

QUESTION 11
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11.1 R12 800√ (1)

11.2 R11 000 √ (1)

11.3 Yes√, R1800√ (2)

11.4
Wages Salaries
Paid on a weekly basis√√ Paid on a monthly basis√√
(2x2) (4)

11.5 Any relevant and correct answer. The answer must contain that either she must
increase her income√√ or decrease her expenses√√. Learners can also give a practical
example like do more hair services or spend less money on her phone bill. √√ (2)

[10]

TOTAL SECTION C: 50
GRAND TOTAL: 100

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