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Question 1

Economics

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Question 1. Answer the following: [24marks; 6 marks each] a. Discuss the reason(s) behind dividing the project into three phases ( why not all of the in one phase) b. Discuss the importance of human resources part in feasibility study". c. Explain the difference between simple interest rate and compound interest rate. d. Discuss the planning horizon and why it's important for project evaluation.

Government debt is made cheaper when the Reserve Bank purchases bonds. Explain this statement. What is the impact of Quantitative Easing on the yield of government bonds? How has center bank been able to control the rate of interest on these bonds