Exam (elaborations)
ECS2603 ASSESSMENT 4 OF SEM 1 OF 2024 EXPECTED ANSWERS
- Institution
- University Of South Africa (Unisa)
ECS2603 ASSESSMENT 4 EXPECTED ANSWERS ,THESE SOLUTIONS WILL HELP YOU SCORE ABOVE 75%
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Question 49 The questions in this part are based on Exchange Rates in the SARB Quarterly Bulletin, March 2022, S-112.Answer saved In 2021 the rand depreciated against the Brazilian Real, Chinese Yuan, EU Euro, UK Pound and US Dollar.
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True
False
In October 2021 the rand/Japanese yen was 13.138
In 2020 the Rand/Botswana pula exchange rate was 143.52
In March 2021 the South African rand _____ against the Chinese yuan compared to February 2021.
appreciated
depreciated
Question 50 If a Big Mac costs R34.51 in South Africa and $6.79 in the US, then purchasing power parity requires the rand/dollar exchange rate to
Answer saved be R (2 decimal places).
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Answer: 5.
,Question 43 If Country A's inflation rate is higher than Country B's inflation rate, the competitiveness of Country A
Answer saved Country B can be maintained by allowing Country A's currency to depreciate against Country B's cur
difference (or margin) between the two inflation rates.
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True
False
Clear my choice
Question 44 If the South African inflation rate is 12% per annum and that of the United States is 10% per annum,
Answer saved depreciate by 2% against the US dollar for the prices of South African exports to the United States to
ceteris paribus.
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True
False
Clear my choice
Question 45 An effective exchange rate is also called a multilateral exchange rate.
Answer saved
M arked out of True
2.00
False
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Question 46 An increase in the inflation rate in South Africa relative to the inflation rate in the US will require that
Answer saved depreciate against the dollar to keep the relative purchasing power the same.
,Question 47 A PPP exchange rate can only be expressed as an index.
Answer saved
M arked out of True
2.00
False
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Question 48 The Big Mac index shows what exchange rates ought to be to equate the domestic price of a Big Ma
Answer saved other countries.
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2.00 True
False
Clear my choice
P r e vious a c tivity
Forum for assessment 3
, Question 37 The following quoting of the exchange rate between the South African rand and the US dollar R15
Answer saved direct method of quoting.
Marked out of
2.00 True
False
Clear my choice
Question 38 If more South African rands are required to purchase a US dollar, then the rand appreciated and t
Answer saved depreciated.
Marked out of
2.00 True
False
Clear my choice
Question 39 If more South African rands are required to purchase a US dollar, then the rand depreciated and t
Answer saved appreciated.
Marked out of
2.00 True
False
Clear my choice
Question 40 ff the exchange rate is quoted as R12.4 = $1, the indirect quote (two decimal points) is R1 =
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