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</p> Signup and view all the answers

    What is the driving factor behind government debt?

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

    What is the largest single issuer of bonds?

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

    What is another term used to describe parastatal bonds?

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

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

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

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

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

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

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

    What is the category of bonds issued by central government?

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

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

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

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

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

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