THIS DOCUMENT CONTAINS ECS1601 ASSESSMENT 4 SEM 2 OF 2024 EXPECTED QUESTIONS AND ANSWERS. USE IT AS A GUIDE AND FOR PRACTICE TO HELP YOU SCORE ABOVE 75%
in So ut h Af ri ca n im ports will ...
cals that a decrease
rts
decrease South African impo .
tfi ut an d in co me in th e r est of the world
increase ou
re ve nu e an d do me st ic pr od uc ti on in South Africa
increase
N
ory?
ne of the following is NOT a purpose of economic the
1o describe what happens in the real world.
'hellp‘ us predict what will happen if something changes. | :
,O b. Only(iv) is correct.
O c. (i) and (iii) are correct.
O d. Only (ii) is correct.
Pick n Pay, Spar, Checkers and Shoprite came together to fix the price of gas heaters in July 2022.
This was so that they could keep the price at a level to ensure that all four stores remained
profitable. On which area of study in economics does this focus?
O a. international economics
@ microeconomics
O c¢. macroeconomics
O d. development economics
, the inflation rate is expected to exceed the target rate by a significant mar
Reserve Bank (SARB) will tend to
- O a. use moral suasion to persuade banks to provide more loans to their clients.
O b. purchase government bonds on the open market. [3
O c¢. reduce the cost of credit to the banks.
O d. decrease the repo rate.
-incfease the repurchase rate (repo rate).
Suppose that South Africa demands L, units of currency, which of the following will result in a
increase in the demand for money?
'\
||
(O a. The interest returns on nominal bonds falls.
- ) b. Thereis an increase in the interest rate by the South African Reserve Bank to fibht:i"r'\"{
, ilsl‘ ‘
e caiontie
A
The following question is based on the passage below:
o
People are rushing in because of a lack of faith in government currencies. The Federal‘ -
: q g
- other central banks have crushed interest rates and are printing unimaglnable amouing of ne;,
pay for Covid-19 relief measures and to stimulate damaged economies. Bitcoin and btfief . {
cryptocurrencies are now seen as a respectable investment class, and financial msmhions’arg
adding Bitcoin to their portfolios. Enthusiasts say Bitcoin is the new gold and thatit will evem
replace the Dollar. y 2131 141
Not so fast! Whatever Bitcoin is, it is not money. ' i1 %
We use money to buy products and services. The Dollar, for instance, is like a claim cheque ona cal‘
a coat, or a ticket to an event - only, in the case of the Dollar, it can be used to purchase or sell ' '
anything. X
Money works best when it has a stable value. While there are stories of vendors being willing to [}‘
accept a cryptocurrency like Bitcoin, cryptocurrencies will remain curiosities until their value is
stable.
Source: hitpsi//www.forbes.com/sites/steveforbes/2021/02/02/bitcoin-is-not-money-yey/
(accessed 8 May 2022)
& & i ‘ -,
ol k 1%
¥ Aoeordhg to th’e pa‘ssage, whleh of the followlng functions of moncy is violated by ) e
i -_....‘......'...a - & i3 s
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