Started on Tuesday, 6 August
2024, 6:39 PM
State Finished
Completed on Tuesday, 6 August
2024, 7:02 PM
Time taken 23 mins 24 secs
Marks 17.00/18.00
Grade 94.44 out of 100.00
Which of the following statements
regarding rating agencies is correct?
a. Corruption is not considered
when rating agencies assign an
investment rating to an
economy.
b. The level of public debt is not
considered when rating agencies
assign an investment rating to
an economy.
c. Countries that fall under
non-investment grade are
also referred to as “junk
status” economies.
d. Credit ratings are only assigned
at the macroeconomic level.
Corruption is considered when rating
agencies assign an investment rating to
an economy. Corruption by government
often leads to mismanagement of public
nances and resources, resulting in
increased government debt and lack of
service delivery to citizens. Corruption
occurs because resources are not used
for the purposes they are meant for. This
negatively affects investor con dence.
The level of public debt is considered
when rating agencies decide on a credit
rating. If government is unable to repay
its debt, this makes the country a higher
default risk. Default risk refers to the risk
associated with a country’s ability to
repay its debts. Therefore, the higher the
level of public debt, the higher the default
risk associated with the country.
Countries that fall under non-investment
grade are also referred to as “junk status”
economies. These are usually countries
with high levels of public debt, corruption,
low economic growth, and political
interference in state institutions.
Credit ratings can also be assigned at a
smaller scale to commercial banks, such
as Absa and First National Bank, state-
owned enterprises such as Eskom and
even retail stores, such as Edgars. Their
creditworthiness, management and
e ciency are also assessed before
individuals and large pension funds
decide to invest.
The next question is based on the
information in the table below.
The South African consumer price index
(all urban areas) 2018 and 2019
(December 2016 = 100)
South African Reserve Bank, Quarterly
Bulletin, December 2020
What was the percentage change for
food and non-alcoholic beverages
between 2018 and 2019?
a. 4,6%
b. 6,1%
c. 3,5%
d. -3,4%
The percentage change in the consumer
price index for food and non-alcoholic
beverages can be calculated as follows :
Question 3
Correct
Mark 1.00 out of 1.00
If the newspaper reports that “the
construction sector was responsible for
1,2% of the GDP growth”, then this
implies that the GDP has been measured
according to the
a. expenditure method.
b. production method.
c. income method.
d. nominal prices method.
The measurement of GDP used in this
instance is production method, as it
looks at the value added by the sector.
The statement does not discuss the
respective expenditures of the sector.
Which of the following statements are
correct examples of nal goods and
intermediate goods?
a) Thabo buys cake and milk for
breakfast at the local supermarket.
b) Sne is a baker and buys milk, our,
sugar and so on to make delicious
scones, which she sells to the
community.
c) Sibusiso, a farmer, buys seed to plant
vegetables.
a and b
b and c
b
c
a, b and c
Final goods are sold to the consumer and
the intermediate goods are sold to be
used as part of the production process.
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, creditcard of Stuvia-tegoed voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper ExpertAcademy. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €2,86. Je zit daarna nergens aan vast.