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ECS3703 ASSIGNMENT 2 FOR 2ND SEM 2026

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Institution University Of South Africa (Unisa)
Course International Finance (ECS3703)
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ECS3703 ASSIGNMENT 2 FOR 2ND SEM 2026

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ECS3703
ASSIGNMENT 02
YEAR: 2026

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Question text
The monetary approach assumes that the following assumption holds:
a.
Domestic and foreign bonds are imperfect substitutes
b.
Covered interest arbitrage holds
c.
Expectations do not affect the future spot exchange rate
d.
None of the above
Question 2
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Direct controls refer to:
a.
Tariffs, quotas, and other quantitative restrictions on the flow of international trade
b.
Restrictions on international capital flows
c.
Multiple exchange rates
d.
All of the above
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