Bond Issuers in South Africa

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Questions and Answers

What is the primary reason for the central government to issue long-term debt obligations?

  • To reduce the government debt
  • To increase the Gross Domestic Product (GDP)
  • To finance (partly) the budget deficit (correct)
  • To finance the budget surplus

Which of the following is NOT a level of government sector bonds in South Africa?

  • Local authorities
  • National government
  • Provincial governments
  • Municipal government (correct)

What is the term used to describe bonds issued by state-owned enterprises?

  • Special purpose vehicle bonds
  • Parastatal bonds (correct)
  • Corporate bonds
  • Government sector bonds

What is the term used to describe the consolidation of national, provincial, and local governments?

<p>Consolidated general government (C)</p> Signup and view all the answers

What is the driving factor behind government debt?

<p>Budget deficit (B)</p> Signup and view all the answers

What is the largest single issuer of bonds?

<p>Central government (C)</p> Signup and view all the answers

What is another term used to describe parastatal bonds?

<p>State owned enterprise bonds (C)</p> Signup and view all the answers

Which of the following is NOT a type of financial intermediary?

<p>Household sector (A)</p> Signup and view all the answers

What is the term used to describe bonds issued by public enterprises?

<p>Parastatal bonds (A)</p> Signup and view all the answers

Which of the following is an example of a non-deposit intermediary?

<p>Contractual intermediaries (C)</p> Signup and view all the answers

What is the category of bonds issued by central government?

<p>Government bonds (A)</p> Signup and view all the answers

Which of the following is a type of quasi-financial intermediary?

<p>Development finance institutions (B)</p> Signup and view all the answers

What is the primary motivation for the issue of long-term debt obligations by non-financial public issuers?

<p>To create long-term real assets (C)</p> Signup and view all the answers

Which of the following financial public enterprises issues bonds to fund long-term agricultural projects?

<p>Land and Agricultural Bank (B)</p> Signup and view all the answers

What is the primary source of benchmark rates for the pricing of corporate bonds?

<p>The government bond yield curve (D)</p> Signup and view all the answers

What is the total amount of locally issued marketable parastatal bonds outstanding as at December 2016?

<p>R300 billion (A)</p> Signup and view all the answers

Which of the following is NOT a non-financial public issuer of bonds?

<p>Development Bank of Southern Africa (DBSA) (C)</p> Signup and view all the answers

What are bonds issued by the corporate sector in South Africa called?

<p>Corporate bonds (B)</p> Signup and view all the answers

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