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fThe following graph shows the relationship between the South African Repo and Prime rate. (use for question 2.1 to 2.3) 2.1 Given the period July
\fThe following graph shows the relationship between the South African Repo and Prime rate. (use for question 2.1 to 2.3) 2.1 Given the period July 2013 to July 201 6, explain the impact of this time period on the Short run exchange market ot the RS {4) 2.2 Given an expected exchange rate of R1513 explain how the decrease in the prime rate from 2008 to 2010 would have an impact on onthe expected rand returns on US deposits (4) 2.3 In 2019 the prime rate in SA is 0.10('|0%) and the expected Randfdollar exchange rate is ms current Randi'dollar exchange rate is 14,9323. Estimate how much the USA interest rates should be in order to achieve interest rate parity (3]
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