ECS2605 Latest exam pack questions and answers and summarized notes for exam preparation. Updated for October November 2023 exams . For assistance Whats-App.0.6.7..1.7.1..1.7.3.9 . All the best on your exams!!
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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)
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(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)
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(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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