Read
section 17.3
in textbook
pg. 384 390
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DVD, for more
on the current
account
Current Account
An important good traded in South Africa is gold
Services trade included transport, construction,
etc.
Income receipts are shown separately. That is
income earned by South Africans in other
countries in the world.
Income payments are money earned by nonSouth Africans in South Africa
Current transfers; money, gifts, services,
etc. traded for nothing in return
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on the
financial
account
Financial account
Direct investment
Investments made in order to over take
management
Portfolio investment
Purchasing assets such as bonds or shares
Other investments
All investment that are not classified as either a
direct or portfolio investment
Unrecorded transactions are used to balance the
financial account
Read
section 17.4
in textbook
pg. 390 400
Watch 1601
DVD, for more
on the
exchange
rates
$1=R11
$1=R10
R/$
Study table
17-4 and 175 on in the
textbook
pg. 393
0
Quantity dollar (Q$)
R/$
D
0
Quantity dollar (Q$)
R/$
S
D
0
Quantity dollar (Q$)
R/$
S
E1
D
0
10
Quantity dollar (Q$)
(in billions per day)
R/$
S
E2
E1
D
0
10
Quantity dollar (Q$)
(in billions per day)
R/$
S
S
9
8.5
8
E2
E3
E1
D
0
8 9 10
Quantity dollar (Q$)
(in billions per day)
Read
section 17.5
in textbook
pg. 400 401
Can you