SCHOOL OF BUSINESS STUDIES

2022 SEMESTER 1 ASSIGNMENT 2

COURSE: MACROECONOMICS

COURSE CODE: BBAC 112

DUE DATE: 29 APRIL 2022

LECTURER: FUNSIWE MZYECE

1. INDICATE YOUR NAME, STUDENT NUMBER, COURSE CODE AND

TITLE INCLUDING ASSIGNMENT NUMBER ON THE COVER PAGE
WHICH HAS A ZAOU LOGO
2. READ THE INSTRUCTIONS AND THE QUESTION (S) CAREFULLY
BEFORE ATTEMPTING TO ANSWER.
3. COPY DOWN THE ASSIGNMENT QUESTION BEFORE YOU ANSWER.
REMAIN FOCUSED
4. THE ASSIGNMENT SHOULD BE ORIGINAL, WELL-RESEARCHED,
CITED REFERENCED AND FLOW LOGICALLY AND A MICROSOFT
WORD DOCUMENT
5. REPEAT. ALWAYS CITE AND ACKNOWLEDGE SOURCES OF
INFORMATION, FAILURE TO WHICH YOU LOSE A LOT OF MARKS.
NO PLAGIARISM
6. THIS ASSIGNMENT CARRIES 25 MARKS, USE 2000 WORDS, + OR –
500 WORDS
QUESTION ONE

i. Discuss the benefits of financial intermediation 6 marks

ii. Describe the classification and the various instruments traded in financial markets
9 marks

Question Two

i. Discuss the functions of taxation in an economy 3 marks

ii. What are progressive taxes? Suppose a government is planning to increase
progressive taxes, as an economist, what arguments would you give against such a
move? Explain. 7 marks