ECS3701 Assignment 2 (COMPLETE ANSWERS) Semester 2 2024 (833935) - DUE 27 September 2024
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ECS3701 Assignment 2 Semester 2
Institution
University Of South Africa
ECS3701 Assignment 2 (COMPLETE ANSWERS) Semester 2 2024 (833935) - DUE 27 September 2024 ; 100% TRUSTED Complete, trusted solutions and explanations. For assistance, Whats-App 0.6.7-1.7.1-1.7.3.9. Ensure your success with us.. 2.01 Discuss how collateral and indirect finance are used in explaining ...
ECS3701 Assignment 2
(COMPLETE ANSWERS)
Semester 2 2024 (833935) -
DUE 27 September 2024
Contact:
@ TestbanksNotesAssignmentsAndExamspack
sGuru
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, [Sch
ool]
[Cours
e title]
,ECS3701 Assignment 2 Semester 1
2024 (833704) - DUE 29
April 2024
2.1 Given the global increase in
inflation resulting from the Russian
invasion of Ukraine, name and
explain the three tools that the South
African Reserve Bank (SARB) can use
to decrease inflation. What adverse
effects can these central banks'
policies have on the economy? [10]
SARB's Tools to Tackle Inflation:
The South African Reserve Bank
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, (SARB) has a toolkit to combat
inflation, and here are three key
instruments they can employ in the
current situation:
1. Repo Rate: This is the interest rate
the SARB charges commercial
banks for borrowing reserves. By
increasing the repo rate, the SARB
makes borrowing more expensive.
This discourages banks from
lending money, reducing the
money supply in circulation. Less
money chasing the same goods
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exam help:
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