If Savings in SA Is R300 Billion and Investment in SA

question 9

Multiple Choice

If savings in SA is R300 billion and investment in SA is R550 billion, then

• A)there must be net capital inflow of R550 billion.
• B)there must be net capital inflow of R250 billion.
• C)the SA government must be running a R250 billion surplus.
• D)the SA financial market must be experiencing a net capital outflow.

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Definitions:

Language

A system of symbols, sounds, and rules used by people to communicate thoughts and feelings.

Cognition

The cognitive process of gaining understanding and knowledge through thinking, experiencing, and sensory perception.

Reliability

A measure of the consistency or repeatability of results obtained from a test, experiment, or assessment tool over time.

Heuristics

Mental shortcuts or rules of thumb that simplify decision making, often helpful but sometimes leading to cognitive biases.