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ECS2605, EXAM PACK 2022 (4 in 1 Package) Study notes, 2 Previous Exam Papers and Calculation Elaborations
ECS2605 summary notes
ECS2605 EXAM PACK 2022
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University of South Africa (Unisa)
Financial Management (ECS2605)
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ECS2605
EXAM PACK
FOR ASSISTANCE WITH THIS MODULE +27 67 171 1739
, CONFIDENTIAL
Page 2 of 19
ECS2605
05/06 2020
SECTION A – COMPULSORY ESSAY QUESTIONS
Answer ALL of the following questions in the space provided. Section A counts 20 marks in total.
(a) What is a credit rating? (2)
(b) Why does South Africa’s recent sovereign credit rating downgrade imply higher funding
costs for the government? (2)
(c) Explain the differences in objectives between the lender-of-last-resort function of the
SARB and its accommodation policy. (4)
, CONFIDENTIAL
Page 3 of 19
ECS2605
05/06 2020
(d) Describe exchange-rate risk and explain how a currency swap can be used to hedge
against exchange-rate risk. (3)
(e) Describe the role of the Basel Committee on Banking Supervision (BCBS). (2)
(f) Explain how the retirement benefit is calculated under both a defined benefit and a
defined contribution retirement fund. (2)
, CONFIDENTIAL
Page 4 of 19
ECS2605
05/06 2020
(g) Name three key objectives of regulators in the financial system. (3)
(h) Explain how the SARB uses its own debentures to manage the liquidity deficit in the
banking
system. (2)
[20]
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