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ECS3703 EXAM PACK2023
QUESTIONS AND ANSWERS
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, UNIVERSITY EXAMINATIONS
January/ February 2022
ECS3703
INTERNATIONAL FINANCE
100 Marks
Duration: 2 Hours
First Examiner: DR NP Vacu- Ngqila
Second Examiner: Dr KO Amusa
External Examiner: Dr L Barnard
STUDENT NUMBER / STUDENTENOMMER
This paper consists of 23 pages, including this cover page.
CONFIDENTIAL
Instructions:
Submit your answers as a single document in PDF format. After completion of the exam
paper, submit your answers in one single PDF document using the eAssessment tool on
myExams portal. (https://cems.myexams.unisa.ac.za/portal)
It is preferable for you to type your answers (Font: Arial 12) and then convert your document
to PDF format for submission. However, if this is not possible, you may also write your
answers down and scan them into a PDF file format. Please write legibly.
Start with a cover page stating the module code (ECS3703) and your student number.
This should be followed by your answers to the questions. Note that all four questions are
compulsory. There are no elective questions.
Make sure that each question or sub question is clearly numbered.
While you are not required to cite your sources, this does not mean that you can simply copy
information from any source. You need to answer the questions in your own words.
Plagiarism will not be tolerated and may result in disciplinary action if detected.
Ensure that you type “I agree” for the declaration of honesty before you submit your answer
script.
Please ensure that your PDF document is NOT encrypted to a “secured” mode and that it is
NOT password protected as such files cannot be marked. Virus infected files will also not be
marked.
Open Rubric
, Page 3 of 23 ECS3703
CONFIDENTIAL Jan/Feb 2022
QUESTION 1 [15 marks]
Suppose a nation with an open economy and fixed exchange rates is in equilibrium at
its natural level of output. With the aid of a graph, explain the effects of expansionary
fiscal policy.
, Page 6 of 23 ECS3703
CONFIDENTIAL Jan/Feb 2022
QUESTION 2 (15 marks)
With the aid of a diagram, briefly explain how aggregate demand is derived from the
IS-LM model under fixed exchange rates.
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