An Increase in SA Net Capital Outflow Increases the Supply

question 21

True/False

An increase in SA net capital outflow increases the supply of rands in the market for foreign currency exchange and decreases the real exchange rate of the rands.

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Definitions:

Encoding-Specificity

The principle that memory retrieval is most effective when the cues at the time of recall match those present during encoding.

Retrieval Cues

Stimuli or signals that can prompt the recall of information stored in memory, facilitating access to particular pieces of information.

Context Reinstatement

A way of improving retrieval by re-creating the state of mind that accompanied the initial learning.

Encoding Specificity

The principle that memory is improved when information available at encoding is also available at retrieval.