Money and Banking

Question 1

Name the central bank in South Africa

Answer 1

South African Reserve Bank

Question 2

what is the purpose of the SARB??

Answer 2

The SARB is the there to protect the value of money and its independent institution

Question 3

how will a cut in the interest rate influence the consumer spending?

Answer 3

since the interest has decreased more consumers will purchase goods and services

Question 4

Briefly explain the government banker as a function in the central bank

Answer 4

The government renders services to the state
government department deposit checks into the SARB accounts and draw cheques against their accounts

Question 5

name two more functions of the monetary policy

Answer 5

interest rate and open market transactions