QUIZ
Assessment 3
Open course index
Open block drawer
Started on Tuesday, 13 August 2024, 4:20 AM
State Finished
Completed on Tuesday, 13 August 2024, 5:43 AM
Time taken 1 hour 22 mins
Marks 18.00/18.00
Grade 100.00 out of 100.00
Question 1
Correct
Mark 1.00 out of 1.00
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Question text
Which of the following statements regarding rating agencies is correct?
a.
Corruption is not considered when rating agencies assign an investment rating to an economy.
b.
The level of public debt is not considered when rating agencies assign an investment rating to
an economy.
c.
Countries that fall under non-investment grade are also referred to as “junk status” economies.
d.
Credit ratings are only assigned at the macroeconomic level.
Feedback
Corruption is considered when rating agencies assign an investment rating to an economy.
Corruption by government often leads to mismanagement of public finances and resources,
resulting in increased government debt and lack of service delivery to citizens. Corruption
occurs because resources are not used for the purposes they are meant for. This negatively
affects investor confidence.
The level of public debt is considered when rating agencies decide on a credit rating. If
government is unable to repay its debt, this makes the country a higher default risk. Default risk
refers to the risk associated with a country’s ability to repay its debts. Therefore, the higher the
level of public debt, the higher the default risk associated with the country. Countries that fall
under non-investment grade are also referred to as “junk status” economies. These are usually
countries with high levels of public debt, corruption, low economic growth, and political
interference in state institutions.
Credit ratings can also be assigned at a smaller scale to commercial banks, such as Absa and
First National Bank, state-owned enterprises such as Eskom and even retail stores, such as
Edgars. Their creditworthiness, management and efficiency are also assessed before
individuals and large pension funds decide to invest.
,Question 2
Correct
Mark 1.00 out of 1.00
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Question text
The next question is based on the information in the table below.
The South African consumer price index (all urban areas) 2018 and 2019 (December 2016 =
100)
South African Reserve Bank, Quarterly Bulletin, December 2020
What was the percentage change for food and non-alcoholic beverages between 2018 and
2019?
a.
4,6%
b.
6,1%
c.
3,5%
d.
-3,4%
Feedback
The percentage change in the consumer price index for food and non-alcoholic beverages can
be calculated as follows :
, Question 3
Correct
Mark 1.00 out of 1.00
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Question text
The question is based on the information in the table below:
The growth rate in real GDP between 2018 and 2019 was _____.
a.
3,71%
b.
4,18%
c.
4,73%
d.
4,23%
Feedback
Assessment 3
Open course index
Open block drawer
Started on Tuesday, 13 August 2024, 4:20 AM
State Finished
Completed on Tuesday, 13 August 2024, 5:43 AM
Time taken 1 hour 22 mins
Marks 18.00/18.00
Grade 100.00 out of 100.00
Question 1
Correct
Mark 1.00 out of 1.00
Flag question
Question text
Which of the following statements regarding rating agencies is correct?
a.
Corruption is not considered when rating agencies assign an investment rating to an economy.
b.
The level of public debt is not considered when rating agencies assign an investment rating to
an economy.
c.
Countries that fall under non-investment grade are also referred to as “junk status” economies.
d.
Credit ratings are only assigned at the macroeconomic level.
Feedback
Corruption is considered when rating agencies assign an investment rating to an economy.
Corruption by government often leads to mismanagement of public finances and resources,
resulting in increased government debt and lack of service delivery to citizens. Corruption
occurs because resources are not used for the purposes they are meant for. This negatively
affects investor confidence.
The level of public debt is considered when rating agencies decide on a credit rating. If
government is unable to repay its debt, this makes the country a higher default risk. Default risk
refers to the risk associated with a country’s ability to repay its debts. Therefore, the higher the
level of public debt, the higher the default risk associated with the country. Countries that fall
under non-investment grade are also referred to as “junk status” economies. These are usually
countries with high levels of public debt, corruption, low economic growth, and political
interference in state institutions.
Credit ratings can also be assigned at a smaller scale to commercial banks, such as Absa and
First National Bank, state-owned enterprises such as Eskom and even retail stores, such as
Edgars. Their creditworthiness, management and efficiency are also assessed before
individuals and large pension funds decide to invest.
,Question 2
Correct
Mark 1.00 out of 1.00
Flag question
Question text
The next question is based on the information in the table below.
The South African consumer price index (all urban areas) 2018 and 2019 (December 2016 =
100)
South African Reserve Bank, Quarterly Bulletin, December 2020
What was the percentage change for food and non-alcoholic beverages between 2018 and
2019?
a.
4,6%
b.
6,1%
c.
3,5%
d.
-3,4%
Feedback
The percentage change in the consumer price index for food and non-alcoholic beverages can
be calculated as follows :
, Question 3
Correct
Mark 1.00 out of 1.00
Flag question
Question text
The question is based on the information in the table below:
The growth rate in real GDP between 2018 and 2019 was _____.
a.
3,71%
b.
4,18%
c.
4,73%
d.
4,23%
Feedback
