Podcast
Questions and Answers
What is the primary role of banks according to the text?
What is the primary role of banks according to the text?
- Guarantee a fixed interest rate for all deposits
- Provide financial assistance to individuals for personal use
- Ensure that all deposited money remains untouched
- Facilitate the flow of money between savers, investors, borrowers, and businesses (correct)
In the given example, what is the total interest paid by the entrepreneur to the bank after two years?
In the given example, what is the total interest paid by the entrepreneur to the bank after two years?
- R52,000
- R44,000
- R50,000
- R48,000 (correct)
What is the purpose of the bank lending money to the entrepreneur?
What is the purpose of the bank lending money to the entrepreneur?
- To generate additional revenue for the bank
- To reduce the bank's liabilities
- To fulfill a legal requirement
- To support the entrepreneur in starting a business (correct)
What happens to the money deposited by the woman in the bank?
What happens to the money deposited by the woman in the bank?
What is the impact of the money flow on the economy according to the text?
What is the impact of the money flow on the economy according to the text?
What is the primary role of banks in the economy?
What is the primary role of banks in the economy?
In the given example, what is the interest amount the entrepreneur has to pay per year?
In the given example, what is the interest amount the entrepreneur has to pay per year?
What happens after two years in the given example?
What happens after two years in the given example?
What is the purpose of the bank promising to pay interest to the woman in the example?
What is the purpose of the bank promising to pay interest to the woman in the example?
Why does the flow of money between consumers and producers need to be continual?
Why does the flow of money between consumers and producers need to be continual?
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