Exam (elaborations)
ECS 1601 QUIZ STUDY UNIT 4
- Course
- Institution
ECS 1601 QUIZ STUDY UNIT 4
[Show more]
Seller
Follow
FLOYYD
Reviews received
Content preview
ECS 1601Study Unit 4 Quiz
Multiple Choice Questions (MCQ’s)
1. An increase in the demand for US Dollars will:
[1] Cause the Dollar to depreciate and the Rand to appreciate
[2] Cause the demand curve for Dollars to shift to the left and the Rand to depreciate
[3] Cause the demand curve for Dollars to shift to the right and the Dollar to appreciate
[4] Cause the demand curve for Dollars to shift to the right and the Rand to appreciate
2. The labour units needed to produce cars and TVs in South African and Botswana are as
follows:
South Africa Botswana
Cars 3 8
TVs 2 1
[1] Botswana has an absolute advantage in cars
[2] South Africa has a comparative advantage in cars
[3] South Africa has an absolute advantage in TV’s
[4] All of the above
3. In a floating currency system, policy makers have the following options with regard to
exchange rate policy:
[1] Depreciate the Rand by changing its price
[2] Increase the interest rate in an attempt to prevent a depreciation of the Rand
[3] Sell exports at a cheaper price in order to appreciate the Rand
[4] Offer the Rand at a higher price on the foreign exchange market to cause it to
appreciate
4. The Rand/Dollar equilibrium exchange rate is:
[1] Where the Rand is equal to the Dollar (ZAR1 = US$1)
[2] Where the quantity of Dollars demanded is equal to the quantity of Dollars supplied
[3] Where an increase in the supply of Dollars will be equal to an increase in the supply of
Rands
[4] None of the above statements are correct
5. South Africa’s gold and foreign reserves:
[1] Act as a current account that the government holds with the SARB
[2] Are often hard to determine as we do not know how much gold can still be mined in
South Africa
[3] Will never run out, as it is provided by the natural resources of the country
[4] Are required to prevent large fluctuations in exchange rates between the Rand and
foreign currencies
Quiz will be discussed on your e-tutor site from Monday 3 March Page 1
This study source was downloaded by 100000847097152 from CourseHero.com on 04-18-2023 12:48:27 GMT -05:00
https://www.coursehero.com/file/16706550/Quiz-Study-Unit-4/
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller FLOYYD. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75323 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now