text 22 Which of the following transactions will be classified as direct

Text 22 which of the following transactions will be

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Question text 22 Which of the following transactions will be classified as direct investment in the financial account of the Balance of Payments? a) A British resident buys a factory in South Africa b) Walmart, an American company, purchases 51% of the shares of Massmart, a local company c) A German firm purchases 1000 shares in Massmart on the JSE Securities Exchange Select one: a. Only a b. Only a and b c. Only b d. Only c e. All the statements are correct Feedback The correct answer is: Only a and b Question text 23 Which of the following statements is/are correct? a) An effective exchange rate can be expressed in both real and nominal terms b) Trade credits are an example of other investment c) An effective exchange rate is also called a trade-weighted exchange rate d) The Big Mac index is an example of absolute PPP Question text 24 Which of the following statements is/are correct? a) Changes in real wages are an indication of changes in purchasing power b) The consumer price index (CPI) can be used to deflate nominal income to obtain real income c) When labour productivity increases, unit labour cost also increases, ceteris paribus
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Question text 25 Which of the following statements is/are correct? a) Money is simply another word for income b) Money is essentially a medium of exchange (or means of payment) c) The SA Reserve Bank's repo rate is a good example of a bond-market rate Question text 26 Which of the following statements is/are correct? a) A share price index is constructed in the same way as a price deflator b) Investors should always invest in companies with high dividend yields and low price-earnings ratios c) Share prices are controlled by the government Select one: a. All the statements are correct b. Only a and b c. Only a and c d. Only b and c e. None of the statements is correct Feedback The correct answer is: Only a and b
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  • Fall '15
  • Correct Answer, gross domestic product, National accounts

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