Exam (elaborations)

ECS1601 EXAM QUESTIONS WITH CORRECT VERIFIED SOLUTIONS 100% GUARANTEED PASS (LATEST UPDATE)

0 purchase

Course
ECS1601

Institution
ECS1601

ECS1601 EXAM QUESTIONS WITH CORRECT VERIFIED SOLUTIONS 100% GUARANTEED PASS (LATEST UPDATE)ECS1601 EXAM QUESTIONS WITH CORRECT VERIFIED SOLUTIONS 100% GUARANTEED PASS (LATEST UPDATE)ECS1601 EXAM QUESTIONS WITH CORRECT VERIFIED SOLUTIONS 100% GUARANTEED PASS (LATEST UPDATE)ECS1601 EXAM QUESTIONS WIT...

[Show more]

Preview 4 out of 90 pages

View example

Uploaded on November 11, 2024
Number of pages 90
Written in 2024/2025
Type Exam (elaborations)
Contains Questions & answers

ecs1601 exam questions
ecs1601 exam
ecs1601
ecs
ecs1601 exam questions
ecs1601 exam questions with correct verified solut
ecs1601 exam questions with correct

Institution ECS1601
Course ECS1601

DoctorKen Member since 1 year 194 documents sold

$12.99

Add to cart

Add to wishlist

100% satisfaction guarantee
Immediately available after payment
Both online and in PDF
No strings attached

1
ECS

ECS1601 EXAM QUESTIONS WITH CORRECT
VERIFIED SOLUTIONS 100% GUARANTEED
PASS (LATEST UPDATE)

Which of the following is not considered a macroeconomic issue?

[1] A surplus in the trade balance due to increasing output. [2] The increase
in inequality in the country of Botswana.
[3] The rise in general price level in Zimbabwe.
[4] The unemployment rate of a town in Limpopo province. - ANS ✓[4] The
unemployment rate of a town in Limpopo province.

Which one of the following statements is true about correlation and
causality?

[1] Correlation between variables occurs when two variables have a
relationship.
[2] Correlation between two variables proves causation.
[3] The example of a correlation is when an increase in value of exports
cause a fall in economic growth.
[4] Causality between two variables always implies correlation. - ANS ✓[1]
Correlation between variables occurs when two variables have a relationship.

Which one of the following statements is incorrect?

[1] Money is different from income and wealth
[2] Income refers to reward earned in exchange for offering factors of
production in the production process

ECS1601

, 2
ECS
[3] It is good to hold wealth in the form of money during periods of high
inflation because the value is protected
[4] Money functions as a medium of exchange because it is generally
accepted in payment for goods and services - ANS ✓[3] It is good to hold
wealth in the form of money during periods of high inflation because the value is
protected

Which of the following statements concerning money is correct?

[1] The value of money is not based on the confidence that financial
intermediaries will be able to control the supply to achieve stability and
that the purchasing power does not fall.
[2] Paper money was developed since specialisation between countries led
to increases in trade, causing the use of coins to be inconvenient as they
were difficult to handle. [3] Credit cards are money because they function
as a medium of exchange.
[4] Electronic money is another form of money as it can be used as means of
payments. - ANS ✓[2] Paper money was developed since specialisation between
countries led to increases in trade, causing the use of coins to be inconvenient as
they were difficult to handle.

Which of the following statements are correct?
a. The use of money eliminates the need for a double coincidence of wants
associated with a barter economy.
b. An economy in which goods are traded for other goods is called a barter
economy.
c. Money consists of notes and coins only.

[1] All the statements are correct.
[2] a and b
[3] a and c
[4] b and c - ANS ✓[2] a and b

ECS1601

, 3
ECS
Which of the following forms of money is based solely on the function of
money as a medium of exchange?

[1] M1, M2, M3
[2] M1
[3] M2
[4] M3 - ANS ✓[2] M1

Given the following information, which option is correct?

Coins = R50 000
Notes = R200 000
Demand deposits = R350 000
Quasi money = R500 000
M3 = R1 800 000

[1] Long-term deposits are R700 000
[2] M1 is R350 000
[3] Cash is R200 000
[4] M2 is R500 000 - ANS ✓[1] Long-term deposits are R700 000

Which of the following statements regarding financial intermediaries
is/are correct?

a) Financial institutions channel funds from surplus economic units to
deficit economic units.
b) Financial institutions channel funds from surplus household to deficit
household units only.
c) John saves a portion of his monthly income at his local bank. We can
conclude that John is an example of a surplus unit.

ECS1601

, 4
ECS
d) Sarah has a financial emergency and goes to her local bank to borrow R3
000, which she will pay at a later date. We can conclude that Sarah is an
example of a surplus unit.

[1] only b is incorrect
[2] both a and b are correct
[3] both a and c are correct
[4] only d is correct - ANS ✓[3] both a and c are correct

Which one of the following statements regarding the demand for money is
true?

[1] Economic participants hold money for transaction purposes only.
[2] When money is held as an asset, it is referred to as the demand for
active balances.
[3] The demand for active balances depend on the level of income and the
speculative demand for money depends on the level of interest rate.
[4] When economic participants hold money as an asset, they earn interest
- ANS ✓[3] The demand for active balances depend on the level of income and
the speculative demand for money depends on the level of interest rate.

If national income increases from R150 billion to R200 billion, the money
demand for transaction purpose will ______ and the demand curve for money
will______.

[1] decrease; make a leftward shift
[2] increase; remain the same
[3] cannot be determined; remain the same
[4] increase; make a rightward shift - ANS ✓[4] increase; make a rightward
shift

ECS1601

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 DoctorKen. 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)

69052 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling

Seller

Exam (elaborations) ·

Exam (elaborations)

ECS1601 EXAM QUESTIONS WITH CORRECT VERIFIED SOLUTIONS 100% GUARANTEED PASS (LATEST UPDATE)

Document information

Subjects

Written for