Formulas

Question 1

Compensation formula

Answer 1

Damage caused x insured
——–
Building

Question 2

Balance of trade

Answer 2

Visible exports - visible imports

Question 3

Balance on the current account

Answer 3

Balance of trade plus/minus the difference between visible exports and imports

Question 4

Inflation

Answer 4

The increase in prices in yr 2 divided by the level of prices in yr 1 x 100

Question 5

GDP

Answer 5

Number of goods produced in 1 yr X average price or unit

Question 6

Average clause

Answer 6

Sum insured
—————— X Loss
True value

Question 7

Overtime

Answer 7

Hourly rates X (st) hours + overtime rate + overtime hours