MODULE :ECS2605
,ECS2605 Exam Pack
Contains:
• Exam Questions & Answers
• Exam Study Notes
• Questions & Solutions
, 1
Contents
SOUTH AFRICAN RESERVE BANK ...................................................................................................... 7
The Role of the SARB ........................................................................................................................... 7
Independence ......................................................................................................................................... 7
Functions of the SARB .......................................................................................................................... 8
Bank supervision .................................................................................................................................. 10
Implementing Monetary Policy ........................................................................................................... 12
Liquidity management ......................................................................................................................... 15
The Corporation for Public Deposits ................................................................................................. 20
INDIVIDUAL BANKS ............................................................................................................................... 22
Their Functions ..................................................................................................................................... 22
Functions of a commercial bank ........................................................................................................ 24
Functions of investment banks........................................................................................................... 25
Regulation of banks ............................................................................................................................. 27
The South African Banks Act ............................................................................................................. 27
Prudential requirements ...................................................................................................................... 28
Liquid asset requirements ................................................................................................................... 29
Cash reserve ......................................................................................................................................... 29
FICA 2001 ............................................................................................................................................. 30
FAIS Act 2002 ....................................................................................................................................... 30
Other relevant legislation .................................................................................................................... 31
National Credit Bill ................................................................................................................................ 31
Asset and liability structure and management ................................................................................. 31
Financing a deficit SG p15 .................................................................................................................. 33
Classification of financial intermediaries: VZ p7 .............................................................................. 35
Role of financial intermediaries SG p17 ........................................................................................... 36
Other financial bodies playing part in the economy, exchanges................................................... 37
The Financial Services Board (FSB) ............................................................................................................. 38
Departments of the FSB .......................................................................................................................... 39
Basic terminology and calculations............................................................................................................. 74
Annual yield ............................................................................................................................................ 74
LUCIANO SCHOOL OF LAW & SOCIAL SCIENCES [LSLSS]
, 2
INTEREST ADD-ON INSTRUMENTS VZ p242 ............................................................................................ 77
REPURCHASE AGREEMENTS ................................................................................................................... 78
BOND INSTRUMENTS .............................................................................................................................. 79
Classification of money market securities VZ p234 ................................................................................ 82
Participants VZ p231 ................................................................................................................................... 84
CALCULATIONS ........................................................................................................................................ 99
SUGGESTED SOLUTIONS to exam questions............................................................................................. 114
LUCIANO SCHOOL OF LAW & SOCIAL SCIENCES [LSLSS]
,ECS2605 Exam Pack
Contains:
• Exam Questions & Answers
• Exam Study Notes
• Questions & Solutions
, 1
Contents
SOUTH AFRICAN RESERVE BANK ...................................................................................................... 7
The Role of the SARB ........................................................................................................................... 7
Independence ......................................................................................................................................... 7
Functions of the SARB .......................................................................................................................... 8
Bank supervision .................................................................................................................................. 10
Implementing Monetary Policy ........................................................................................................... 12
Liquidity management ......................................................................................................................... 15
The Corporation for Public Deposits ................................................................................................. 20
INDIVIDUAL BANKS ............................................................................................................................... 22
Their Functions ..................................................................................................................................... 22
Functions of a commercial bank ........................................................................................................ 24
Functions of investment banks........................................................................................................... 25
Regulation of banks ............................................................................................................................. 27
The South African Banks Act ............................................................................................................. 27
Prudential requirements ...................................................................................................................... 28
Liquid asset requirements ................................................................................................................... 29
Cash reserve ......................................................................................................................................... 29
FICA 2001 ............................................................................................................................................. 30
FAIS Act 2002 ....................................................................................................................................... 30
Other relevant legislation .................................................................................................................... 31
National Credit Bill ................................................................................................................................ 31
Asset and liability structure and management ................................................................................. 31
Financing a deficit SG p15 .................................................................................................................. 33
Classification of financial intermediaries: VZ p7 .............................................................................. 35
Role of financial intermediaries SG p17 ........................................................................................... 36
Other financial bodies playing part in the economy, exchanges................................................... 37
The Financial Services Board (FSB) ............................................................................................................. 38
Departments of the FSB .......................................................................................................................... 39
Basic terminology and calculations............................................................................................................. 74
Annual yield ............................................................................................................................................ 74
LUCIANO SCHOOL OF LAW & SOCIAL SCIENCES [LSLSS]
, 2
INTEREST ADD-ON INSTRUMENTS VZ p242 ............................................................................................ 77
REPURCHASE AGREEMENTS ................................................................................................................... 78
BOND INSTRUMENTS .............................................................................................................................. 79
Classification of money market securities VZ p234 ................................................................................ 82
Participants VZ p231 ................................................................................................................................... 84
CALCULATIONS ........................................................................................................................................ 99
SUGGESTED SOLUTIONS to exam questions............................................................................................. 114
LUCIANO SCHOOL OF LAW & SOCIAL SCIENCES [LSLSS]
