Master this deck with 20 terms through effective study methods.
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Interest rate decisions impact the economy.
Lesetja Kganyago holds the position.
The repo rate is 8.25%.
Money is for transactions; wealth includes financial assets.
Medium of exchange, unit of account, store of value.
Trade becomes difficult without a common medium.
Includes currency, coins, and immediately available bank deposits.
To balance transaction needs and interest earnings.
Transaction levels and interest rates determine the choice.
Holding money based on expectations of interest rate changes.
It typically leads to higher interest rates.
Interest rates generally decrease as demand for money rises.
Increases bond supply, decreases bond prices, raises interest rates.
Controls money supply through open-market transactions.
Percentage of deposits banks must hold as reserves.
Increasing it decreases the money supply; decreasing it increases it.
Supply and demand for central bank money set the rate.
Reflects how much money supply can increase from reserves.
It decreases the money supply and raises interest rates.
Demand for money decreases as interest rates increase.