1.1 Explain the two (2) main motives for holding money. (6) 1.2 Explain how the Reserve...

 

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1.1 Explain the two (2) main motives for holding money. (6) 1.2 Explain how the Reserve Bank (SARB) can use accommodation policy to control inflation in South Africa. (6) 1.3 Year The following information represents money supply for a hypothetical economy. 2020 2021 Coins and bank notes in Demand deposits Short-term and (RM) medium-term circulation (Rm) deposits (Rm) 87 014 1 045 025 748 093 94 193 1 148 557 787 178 1.3.1 Calculate the value for M1 for 2020 and 2021. 1.3.2 Calculate the value for M2 for 2020 and 2021. (4) (4) 1.1 Explain the two (2) main motives for holding money. (6) 1.2 Explain how the Reserve Bank (SARB) can use accommodation policy to control inflation in South Africa. (6) 1.3 Year The following information represents money supply for a hypothetical economy. 2020 2021 Coins and bank notes in Demand deposits Short-term and (RM) medium-term circulation (Rm) deposits (Rm) 87 014 1 045 025 748 093 94 193 1 148 557 787 178 1.3.1 Calculate the value for M1 for 2020 and 2021. 1.3.2 Calculate the value for M2 for 2020 and 2021. (4) (4)

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11 The two main motives for holding money are 1 Transactionary motive People hold money to facilitat... View the full answer