ECS2605 South African Financial System (ECS2605)

ECS2605 UPDATED EXAM PACK (Including May/ June 2020 - 2021 Memo) 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) A credit rating is an evaluation of the credit risk of a prospective debtor, predicting their ability to pay back the debt, and an implicit forecast of the likelihood of the debtor defaulting. (b) Why does South Africa’s recent sovereign credit ratin...

Recent exam questions and answers and summarized notes for exam preparation. Whatsapp 067 171 1739 or 067 026 7903 for assistance. All the best on your exams!!

Recent exam questions and answers and summarized notes for exam preparation. Whatsapp 067 171 1739 or 067 026 7903 for assistance. All the best on your exams!!

ECS2605 EXAM PACK. ECS2605 - South African Financial System. What is a credit rating? (2) A credit rating is an evaluation of the credit risk of a prospective debtor, predicting their ability to pay back the debt, and an implicit forecast of the likelihood of the debtor defaulting. (b) Why does South Africa’s recent sovereign credit rating downgrade imply higher funding costs for the government? (2) Clients need to know that there is a direct correlation between the level of long-term i...

ECS2605 EXAM REVISION PACK Written by TWP 2016 ECS2605 Tel: 021 838 8251 SUGGESTED SOLUTIONS FOR MAY/JUNE 2015 QUESTION 1 a) i. Money market  A segment of the financial market in which financial instruments with high liquidity and very short maturities are traded  The money market is used by participants as a means for borrowing and lending in the short term, from several days to just under a year Whilst Capital market  Capital market is a market where buyer...