Finance Answers

QUESTION 1:

 (25 MARKS)

As the economies of the whole world grow more interdependent, a country’s monetary policy can no 

longer be conducted without taking international considerations into account.

Using practical examples, discuss how the South African central bank’s Monetary Policy Committee

(MPC) may use the following alternative monetary policy strategies.

i.

Capital controls.

 (10)

ii.

Exchange targeting

A sales representative for a struggling computer supply firm has a chance to close a 

multimillion dollar deal for an office system to be installed over a two year period. The 

machines for the first delivery are in the company’s warehouse, but the remainder would 

have to be ordered from the manufacturer. Because the manufacturer is having difficulty 

meeting the heavy demand for the popular model, the sales representative is not sure that 

subsequent deliveries can be made on time. Any delay in converting to the new system 

would be costly to the customer; however the blame could be placed on the manufacturer. 

Should the sales representative close the deal without advising the customer of the 

delivery problem? Discuss the pros and cons of the decision the sales representative 

chooses to take.

Your friend wants to blow whistle and has come to you for guidance. How would you 

advice her/him to help determine whether she/he has a greater obligation to the public or 

to his/her employer? Make a list of 4-5 tough questions that you need her/him to answer 

before she/he blows the whistle. Explain the purpose of each question. (You can pick a 

social/environmental or economic issue for whistle blowing)

Identify a business (small/medium/large/proprietary/partnership/family/listed etc) that 

provides goods and/or services of any kind (FMCG, Education, Hospitality etc) and was 

impacted during 2019-20 or 2020-21 (any one year) due to Covid Pandemic. Identify and 

list the business challenges it faced (atleast three) and explain how the business managed 

the following three risks; Financial risk, Operational risk & Human Resource risk during 

the above-mentioned period. What strategies & initiatives did it deploy to address and 

overcome these three risks and survive/grow during the period (Answering that the 

business shut down is not an option). Connect and talk to people among your family / 

friends / neighborhood / your company / employer etc

a) Two events, M and N, are such that P(M) = 0.6, P(M ∩N) = 0.2, P(M ∪N) = 0.85

Find

(i) P(N |M) [2]

State, with reason, whether M and N are

(ii) mutually exclusive [2]

(iii) independent. [2]

b) The following table shows the results of a sample survey carried out by a fast-food restaurant to determine whether persons had noticed an improvement in its service in the last month

Voting Results

Sex

Improvement Seen

No improvement

No Opinion

Male

25

21

34

Female

16

38

16

i. How many people were in the survey? [1]

ii. A patron was selected at random from the sample.

a) Determine the probability that the patron thought that there was an improvement in service. [2]

b) Determine the probability that the patron was a female or thought that there was no improvement in the service. [3]

c) Given that the patron thought there was an improvement, what is the probability that the patron was a male?

Mr. Akbar provides you with the following information-(all the transactions are separate and independent of each other)

 Started business with cash Rs150000

 Purchased goods for cash Rs 25000

 Sold goods to C on credit Rs 20000

 Paid salary for cash Rs15000

 Deposited cash into the bank account Rs100000

Identify the accounts being affected in the monetary transaction and Identify the type of accounts identified - real, personal or nominal

Discuss the rule of passing the journal entry applicable here and pass the journal entry (Golden rule or transaction analysis, any of these rule/s can be taken as a base to justify the answer)

Discuss the steps of performing trend analysis on the financial statements of any company.

Download the Balance sheet of any company of your interest from the open sources. Perform the comparative analysis of that Balance sheet and discuss your findings.

How does loss provision affect financial institution's capital and share price?

There are three basic types of non-use value. Name and explain them