UNISA 2024 ECS1601-24-Y Online assessments Assessment 3
QUIZ
Started on Wednesday, 7 August 2024, 10:33 AM
State Finished
Completed on Wednesday, 7 August 2024, 10:43 AM
Time taken 10 mins 32 secs
Marks 17.00/18.00
Grade 94.44 out of 100.00
Question 1
Correct
Mark 1.00 out of 1.00
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 finances 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 confidence.
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 efficiency
are also assessed before individuals and large pension funds decide to invest.
, Question 2
Correct
Mark 1.00 out of 1.00
The question is based on the information in the table below:
The growth rate in real GDP between 2018 and 2019 was _____.
a. 3,71%
b. 4,18%
c. 4,73%
d. 4,23%
The growth rate in real GDP between 2018 and 2019 can be calculated as follows:
QUIZ
Started on Wednesday, 7 August 2024, 10:33 AM
State Finished
Completed on Wednesday, 7 August 2024, 10:43 AM
Time taken 10 mins 32 secs
Marks 17.00/18.00
Grade 94.44 out of 100.00
Question 1
Correct
Mark 1.00 out of 1.00
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 finances 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 confidence.
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 efficiency
are also assessed before individuals and large pension funds decide to invest.
, Question 2
Correct
Mark 1.00 out of 1.00
The question is based on the information in the table below:
The growth rate in real GDP between 2018 and 2019 was _____.
a. 3,71%
b. 4,18%
c. 4,73%
d. 4,23%
The growth rate in real GDP between 2018 and 2019 can be calculated as follows:
