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Ecs1500 Assignment 6 semester 2 2023
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9/25/23, 4:31 PM Assessment 6: Attempt reviewUNISA 2023 ECS1500-23-S2 Welcome Message Assessment 6
QUIZ
Started on Monday, 25 September 2023, 4:05 PM
State Finished
Completed on Monday, 25 September 2023, 4:31 PM
Time taken 25 mins 47 secs
Marks 36.00/40.00
Grade 90.00 out of 100.00
Feedback Excellent performance. You seem to understand Learning Units
8, 9 and 10 well.
Question 1
Correct
Mark 2.00 out of 2.00
One of the functions of money is a store of value, therefore diamonds can be
regarded as money as the value of diamonds has remained rather stable over the
year.
Select one:
a. True
b. False
Your answer is correct.
Money has two main functions, namely as a medium of exchange and a store of
value. The medium of exchange function is unique to money, while the store of
value function is not unique to money. Diamonds are assets that retain their value
rather effectively. However, since diamonds are not generally acceptable as a
medium of exchange, due to several practical considerations, they are not regarded
as money.
The correct answer is: False
https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=13682638&cmid=622795 1/15
, 9/25/23, 4:31 PM Assessment 6: Attempt review
Question 2
Correct
Mark 2.00 out of 2.00
Which of the following statements regarding the nancial system is not correct?
a. Financial intermediaries facilitate lending and borrowing activities between
surplus and de cit units.
b. Unit trusts are classi ed as collective investment schemes.
c. Shares and bonds are examples of capital market instruments.
d. Shares can only be traded at a physical location or building, such as the
Johannesburg Stock Exchange (JSE).
Your answer is correct.
Shares can be traded online on various platforms other than the Johannesburg Stock
Exchange (JSE), using computers and smartphones. Therefore, trading is
not restricted to a physical location or building.
Financial intermediaries exist to assist in transferring funds from surplus units
(those who have savings or excess cash to lend money) to de cit units (those who
wish to borrow money). Financial intermediaries intervene to make this process
easier.
Unit trusts pool investors’ monies together into a single fund. These monies are then
split across different nancial instruments to reduce exposure to risk of losing
capital invested. This is why unit trusts are classi ed as a collective investment
scheme.
Shares and bonds are capital market instruments, which are issued for a period of
one year or longer. A share represents ownership in a company that issues shares.
This interest (part ownership) in a company is called equity. A bond represents debt
because the issuer of the bond (the party that needs funding) will pay a
predetermined interest rate as a return on investment to the bondholder (the party
that provides the funding).
The correct answer is:
Shares can only be traded at a physical location or building, such as the
Johannesburg Stock Exchange (JSE).
https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=13682638&cmid=622795 2/15
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