ECS3701 Monetary Economics (ECS3701)

ECS3701 Oct/Nov 2017 1. Explain the following terms i. Inflation targeting Monetary policy strategy that involves public announcement of a medium-term numerical target for inflation. ii. Interest rate risk The riskiness of earnings and returns that is associated with changes in interest rates iii. Monetary Policy Monetary policy can be defined as the measures taken by the monetary authorities to influence the quantity of money or the rate of interest with a view to achieving st...

ECS3701 Assignment 1 Semester 1 2024.Question 15 Correct Mark 1.00 out of 1.00 Question 16 Correct Mark 1.00 out of 1.00 Question 17 Correct Mark 1.00 out of 1.00 Question 18 Correct Mark 1.00 out of 1.00 Which of the functions of money distinguishes it from other assets? a. Medium of exchange b. Store of value c. Measure of value d. Unit of account The correct answer is: Medium of exchange When paper currency is decreed by governments to be legal tender, legally it must ...

ecs3701 exam pack 2023

ECS3701 MAY/JUN 2013 MEMO SECTION A COMPULSORY QUESTION QUESTION 1 1.1 Differentiate between the following (i) Direct and indirect finance [4] -direct financing- borrowers borrow funds directly from lenders in the financial markets by selling them securities  -Indirect finance- financial intermediary stands between lender-savers and borrowerspenders and helps transfer funds from one to the other  (ii) Money market and capital market [4] The money market is a financia...

ECS301 october/november exam pack 2022/2023 MAY/JUNE Part 1: Definition and functions of money (15 Marks) Answer all questions in part 1. 1.1 List and explain the three primary functions of money. (2) Medium of Exchange: money serves as a medium of exchange allowing it to be used as payment for goods and services. As such it promotes economic efficiency by reducing the time taken for transactions to take place. Unit of Account: used to measure value of goods and services in an economy...

ECS3701 SUMMARY 2022/2023 Monetary Economic – ECS3701 CHAPTER 1 - WHY STUDY MONEY, BANKING AND FINANCIAL MARKETS. WHY STUDY FINANCIAL MARKETS Financial markets such as bond and stock markets are crucial to promoting greater economic efficiency by channeling funds from people who do not have a proper use to people who do. Well functioning financial markets are a key to producing high economic growth and have direct effects on personal wealth, behavior on business consumers and the cycli...

ECS3701 EXAM PACK 2 OCTOBER/NOVEMBER 2014 Question 1 1.1 Bond attracts interest as return stock attracts dividends as return. 1.2 They have expertise thus they can detect and prevent adverse selection. -they have economies of scale 1.3 –to protect depositors -to detect investors -to prevent financial crisis. 1.4 money market is market for short-term funds eg TB -capital market is a market for long term funds eg stock 1.5 M2 = -Is a broader definition of money M1 plus deposits whi...

ECS3701 Exam June 2020 University of South Africa CONFIDENTIAL Economics ECS3701 Exam Paper 17 June 2020 University of South Africa Economics Department ECS3701 June Take Home Examination Name James Stafford Dearham Student Number ID Number 4084 Date June Exam, 17 June 2020 University of South Africa CONFIDENTIAL Economics ECS3701 Exam Paper 17 June 2020 1.1 Money is useful due to its three functions. Firstly, it acts as a medium of exchange. This means that it can be used for ...

ECS3701 Assignment 1 Semester 2 2022. ECS3701 - Monetary Economics Everything else held constant, a decrease in interest rates will cause spending on housing to ... a. rise. b. either rise or fall. c. fall. d. remain unchanged. The correct answer is: fall. The problem created by asymmetric information before the transaction occurs is called __________ , while the problem created after the transaction occurs is called ____a. symmetric information; free-riding b. free-riding; costly state...

ECS3701 MCQ EXAM PACK. Monetary Economics. List and explain the three primary functions of money. (2) Medium of Exchange: money serves as a medium of exchange allowing it to be used as payment for goods and services. As such it promotes economic efficiency by reducing the time taken for transactions to take place. Unit of Account: used to measure value of goods and services in an economy and helps to reduce transaction costs. Store of Value: serves as a store of purchasing power from th...