ECS2605 EXAM PACK 2025

ECS2605
EXAM PACK




FOR ASSISTANCE WITH THIS MODULE +27 67 171 1739

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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)




(b) Why does South Africa’s recent sovereign credit rating downgrade imply higher funding
costs for the government? (2)




(c) Explain the differences in objectives between the lender-of-last-resort function of the
SARB and its accommodation policy. (4)

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(d) Describe exchange-rate risk and explain how a currency swap can be used to hedge
against exchange-rate risk. (3)




(e) Describe the role of the Basel Committee on Banking Supervision (BCBS). (2)




(f) Explain how the retirement benefit is calculated under both a defined benefit and a
defined contribution retirement fund. (2)

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(g) Name three key objectives of regulators in the financial system. (3)




(h) Explain how the SARB uses its own debentures to manage the liquidity deficit in the
banking
system. (2)




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