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ECS3701 - Assignment 1 Semester 2 2022

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Institution
University Of South Africa (Unisa)
Course
ECS3701 - Monetary Economics (ECS3701)

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Which of the following best describes an asset?


a.
An economic claim

b.
Any item such as income

c.
A piece of property that is a store of value

d.
A financial profit.



Question 2
Correct
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Question text
The process where financial intermediaries create and sell low-risk assets and use the
proceeds to purchase riskier assets is known as ...


a.
risk sharing.

b.
risk aversion.

c.
risk neutrality.

d.
risk selling.

, Question 3
Correct
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Question text
When the interest rate rises, the current bond prices will ...


a.
fall.

b.
rise.

c.
stay the same.

d.
initially fall, then increase.



Question 4
Incorrect
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Question text
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
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Institution
University of South Africa (Unisa)
Course
ECS3701 - Monetary Economics (ECS3701)

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Number of pages
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Written in
2022/2023
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