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4.3.1 Name the central bank in South Africa.

4.3.2 Give ONE example of a money-associated instrument.

4.3.3 Briefly describe the term prime rate.

4.3.4 Explain money as a store of value.

4.3.5 How will a decrease in interest rates influence consumer spending?

4.4 Distinguish between final goods and intermediate goods.

4.5 Evaluate the impacts of multinational companies on the economy.

Answer :

Final answer:

The central bank in South Africa is the South African Reserve Bank (SARB). A debit card is an example of a money-associated instrument. Money serves as a store of value.


Explanation:

The central bank in South Africa is called the South African Reserve Bank (SARB). It is responsible for promoting price stability and ensuring the soundness of the banking system in the country.

An example of a money-associated instrument is a debit card. A debit card allows individuals to make electronic transactions and access funds directly from their bank accounts.

Prinse rate is not a commonly used term in economics. It may be a typographical error or a regional variation of another term. It is recommended to clarify the correct term or provide more context to answer this question.

Money serves as a store of value because it can be saved and held for future use. It retains its purchasing power over time, allowing individuals to store wealth and make future purchases.

A decrease in interest rates can influence consumer spending by making borrowing cheaper. Lower interest rates can reduce the cost of borrowing for both individuals and businesses, which can stimulate spending on loans, mortgages, and other credit-based purchases.

Final goods are products that are ready for consumption or use by end-users. They are the finished products that are directly purchased by consumers. Intermediate goods, on the other hand, are used in the production process to create final goods. They are not meant for direct consumption or use by end-users.

Multinational companies can have both positive and negative impacts on the economy. They can bring in foreign direct investment, create jobs, and drive economic growth. However, they can also lead to adverse effects such as the exploitation of labor, environmental degradation, and the concentration of economic power.


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