ECS3701_June-July 2021 .

UNIVERSITY EXAMINATIONS June/July 2021 ECS3701 Monetary Economics 100 Marks Duration: 2 Hours First Examiner: Prof TLA Leshoro Second Examiner: Ms TS Moletsane External Examiner: Ms PA Mathebula This paper consists of 10 pages. CONFIDENTIAL Instructions: (1) Once you have completed your answers submit it as a single document in PDF format using the eAssessment tool on the myExams portal. It is preferable for you to type your answers (Font: Arial 12) and then convert your document to PDF format for submission. However, if this is not possible, you may also write your answers down and scan them to a PDF file. Please write legibly. (2) Start with a cover page stating the module code (ECS3701) and your student number. (3) This should be followed by your answers to the questions. (4) Make sure that each question and subquestion is clearly numbered. (5) While you are not required to cite your sources, this does not mean that you can simply copy information from any source. You need to answer the questions in your own words. Plagiarism will not be tolerated and may result in disciplinary action if detected. Plagiarism will result in zero mark awarded. (6) Please ensure that you submit a declaration of honesty on myUnisa. (7) You will need your student number and password to access this platform. (8) You need to accept the honour pledge because it is compulsory for every student otherwise you will not be able to access the paper, let alone upload it. This information will be used to report to Student Disciplinary committee should incidents of plagiarism be suspected. (9) Please preview and verify your document before you submit to ensure that it is free of errors, it is readable and that your PDF document is NOT encrypted to a “secured” mode and that it is NOT password protected as these files cannot be marked. Virus-infected files will also not be marked (10) You have 2 hours to complete this assessment. (11) Late submissions will NOT be marked. Emailed scripts will NOT be marked. (12) Once you have submitted on the dedicated platform, you will receive an on-screen message of successful submission. Please keep this email safe as a proof of your submission. (13) If you insist on not being able to upload on either portal, you must contact the number and email address provided in the QA documents posted on the announcement on the module page and provide screenshots of the error screens. STUDENT NUMBER 2 of 10 ECS3701 CONFIDENTIAL 06/07 2021 The Invigilator INSTRUCTIONS ON THE DAY OF ASSESSMENT:  Please log into The Invigilator app. You need to be connected to the internet in order to log in and scan the QR code.  Scan the QR code below once the examination formally commences. If you encounter difficulty with scanning of the QR code you can also enter the QR access code at the bottom of the QR code in order to start the assessment.  Once the QR code is scanned, you can place your cell phone next to you. The Invigilator App will notify you when an action is required. Ensure your media volume Is turned up.  You may access MyUnisa in the application if you only have one device by pressing the ‘access LMS’ button.  Please remember to keep your cell phone on charge for the duration of the assessment.  Keep The Invigilator app open on your cell phone during the assessment. You are not allowed to leave or minimise the application.  When an action is required, a notification beep will be heard. Action the request.  Please ensure you are connected to the internet in order to commence the examination as well as at the end of the examination. No internet connection is needed during the assessment.  It is important to first upload your script to MyUnisa, uploading of app data is not time sensitive and you can do it after you uploaded your script to MyUnisa.  You can click the "Finish Assessment" button in the app if you finish early.  Should you encounter any technical difficulty, please our Helpdesk on .  Good Luck! ECS3701 3 of 10 ECS3701 CONFIDENTIAL 06/07 2021 ANSWER ALL FIVE QUESTIONS. Question 1 [20 marks] 1.1 One of the reasons why some less developed economies grow so slowly is that they do not have well-developed financial markets. Is this statement true or false? Support your answer. [4] 1.2 If you were a private investor, would you and/or financial intermediaries benefit from risk-sharing? Explain which party will benefit and why.