Central Banking (Grade 11 NSC Matric Economics): Flashcards
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SARB full name
SARB full name
South African Reserve Bank
Reserve bank definition
Reserve bank definition
Banker's bank - oversees banking system & economy stability
SARB's 3 main responsibilities
SARB's 3 main responsibilities
Monetary policy, financial efficiency, public education
SA's 5 major banks
SA's 5 major banks
ABSA, Nedcor, Investec, Standard Bank, FirstRand Group
Asset % of 5 major banks
Asset % of 5 major banks
Over 80%
Repo rate
Repo rate
Rate SARB charges commercial banks for borrowing
Increasing repo rate effect
Increasing repo rate effect
Higher borrowing costs, slows economy, cuts inflation
Decreasing repo rate effect
Decreasing repo rate effect
Cheaper borrowing, stimulates economy & growth
Who sets SA inflation targets
Who sets SA inflation targets
Minister of Finance (each February)
Key bank failure impact
Key bank failure impact
Erodes public confidence in banking system