Money and Banking (Grade 11 NSC Matric Economics): Flashcards

Funds with immediate access, no advance notice needed

30 days or less

Highest interest rates (compensation for reduced access)

Banks expand deposits through lending activities

2.5%

$M = C + D$ (cash + demand deposits)

Rate at which commercial banks borrow from SARB

Lowest rate banks lend to most creditworthy customers

Small loans to those without access to traditional banks

2008; protects borrowers from excessive interest rates