The Mystery of Percentage

[Pracs]

I must admit that I am no economist on the onset and it has been quite some time some ten years now since I wrote my Economics exam ! so do excuse me if I sound a bit un lettered. I think from the question that you reproduce the examiner is asking a little more than the defination, you need to define plus put in a line or two explaining how market instruments relate to each other and the marktet mechanism itself. I don't think one needs to put down merits or demerits of it.

I would however, recommend you to discuss it over with your economics lecturer or some thing or some one who has recently passed the exam.