GRAAD 12 NATIONAL SENIOR CERTIFICATE GRADE 10

GRAAD 12 NATIONAL SENIOR CERTIFICATE GRADE 10 ECONOMICS P1 EXEMPLAR 2012 MARKS: 150 TIME: 2 hours This question paper consists of 12 pages. Copy...
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GRAAD 12

NATIONAL SENIOR CERTIFICATE

GRADE 10

ECONOMICS P1 EXEMPLAR 2012

MARKS: 150 TIME: 2 hours

This question paper consists of 12 pages.

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2 NSC – Grade 10 Exemplar

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INSTRUCTIONS AND INFORMATION 1.

Answer FOUR questions as follows in the ANSWER BOOK: • • •

SECTION A: COMPULSORY SECTION B: Answer any TWO of the three questions. SECTION C: Answer ONE of the two questions.

2.

Number the answers correctly according to the numbering system used in this question paper.

3.

Write the question number above each answer.

4.

Read the questions carefully.

5.

Start EACH question on a NEW page.

6.

Leave 2–3 lines between subsections of questions.

7.

Answer the questions in full sentences and ensure that the format, content and context of your responses comply with the cognitive requirements of the questions.

8.

Answer only the required number of questions. Answers in excess of the required number will NOT be marked.

9.

Use only black or blue ink.

10.

You may use a non-programmable pocket calculator.

11.

Write neatly and legibly.

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SECTION A (COMPULSORY) QUESTION 1 1.1

30 MARKS – 15 MINUTES

Various options are provided as possible answers to the following questions. Choose the answer and write only the letter (A–C) next to the question number (1.1.1–1.1.8) in the ANSWER BOOK, for example 1.1.9 C. 1.1.1

The branch of economics that focuses on the behaviour of the economy as a whole is known as … economics. A B C

1.1.2

When we have insufficient resources to satisfy our needs and wants, … exists. A B C

1.1.3

Xhosa. Zulu. San.

South Africa was a … of England for nearly 150 years. A B C

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exchange. opportunity cost. savings.

The first indigenous people in South Africa were the … A B C

1.1.6

Gross Domestic Product. Gross Domestic Expenditure. Gross National Income.

The purchase of a school bag instead of a movie ticket indicates the economic principle of … A B C

1.1.5

labour scarcity capital

The total value of all final goods and services produced within the boundaries of a country in a particular period is known as the … A B C

1.1.4

microdevelopment macro-

province colony village

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1.1.7

A transaction that cannot be done at an ATM is … A B C

1.1.8

the deposit of coins. withdrawals. the payment of accounts.

South Africa's economic development started with … A B C

1.2

DBE/2012

mining. fishing. commercial agriculture.

(8 x 2)

(16)

Choose a description from COLUMN B that matches an item in COLUMN A. Write only the letter (A–I) next to the question number (1.2.1–1.2.8) in the ANSWER BOOK. 1.2.1

COLUMN A Investment

1.2.2

Public goods

1.2.3

PAYE

1.2.4

Education

1.2.5

Urbanisation

1.2.6

Specialisation

1.2.7 1.2.8

A

COLUMN B usually paid by the consumers of these goods and services

B

protects the interests of workers

C

the economic term for expenditure on capital goods

D

the biggest expenditure item of the South African budget

E

direct taxation

F

money that people are compelled by law to accept

G

a growing number of people move to cities and towns

H

in the production of goods, every worker repeats only one activity

I

collectively consumed and owned by communities

Labour unions Legal tender

(8 x 1)

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1.3

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Choose the correct word from those given in brackets. Write only the word next to the question number (1.3.1–1.3.6) in the ANSWER BOOK. 1.3.1

Economically vulnerable people always benefit (expansion/contraction) phase of the business cycle.

1.3.2

Flour used in the production of bread is (final/intermediate) goods.

1.3.3

The general increase in prices is known as (inflation/deflation).

1.3.4

Another name for a workforce is (labour force/entrepreneur).

1.3.5

The (French/Industrial) Revolution started in England.

1.3.6

The central bank in South Africa is called the (Federal/Reserve) Bank. (6 x 1)

(6)

TOTAL SECTION A:

30

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during

the

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SECTION B Answer any TWO of the three questions from this section in the ANSWER BOOK. QUESTION 2: MACROECONOMICS

40 MARKS – 25 MINUTES

2.1

Identify the FOUR factors of production.

(4 x 1)

(4)

2.2

Study the illustration below and answer the questions that follow.

Does the above illustration depict the process of consumption or production?

(2)

2.2.2

Give an example of durable goods in the above illustration.

(1)

2.2.3

Would the expenditure on durable goods above be classified as government expenditure or household consumption expenditure?

(1)

Differentiate between immediate (direct) consumption and deferred (indirect) consumption and give an example of each. (2 x 3)

(6)

2.2.1

2.2.4

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Study the extract below and answer the questions that follow. MR PRICE'S PERFORMANCE Cape Town: In 2011 Mr Price announced a lower accounting profit for the first time in five years. Growth in sales was up 15% to R2,6 billion for the year ended 31 March 2011. 'It is easy to put the blame on smaller consumer spending. Our stocks of some luxury items for Mr Price Weekend Material were simply too high and we had to cut our prices and margins.' Difficult trading circumstances also had an effect on the group's results, just as these conditions have also affected other retailers' trade. The area most affected by the difficult trading conditions was the group's jewellery line, and the group does not plan on expanding this section. [Adapted from: Business Burger, 5 July 2010]

2.3.1

What does accounting profit refer to?

2.3.2

Why did Mr Price experience low profits?

(2 x 2)

(4)

2.3.3

Why, do you think, was the sale of jewellery at Mr Price most affected by the difficult trading conditions? (2 x 2)

(4)

(2)

2.4

Explain the characteristics according to which markets can be classified. (2 x 4)

(8)

2.5

Tabulate the differences between free goods and economic goods.

(8) [40]

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(4 x 2)

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QUESTION 3: ECONOMIC PURSUITS

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40 MARKS – 25 MINUTES

3.1

Give FOUR examples of commodity money.

(4 x 1)

3.2

Study the table below and answer the questions that follow.

(4)

COMPOSITION OF THE SOUTH AFRICAN GDP 1912–2011 [% of GDP] SECTOR Primary * Agriculture, forestry and fishing * Mining * Secondary Tertiary

1912 48,8 21,3

1940 32,7 12,1

1981 A 7,1

1994 11,8 4,6

2003 10,8 3,4

2005 10,2 2,8

2011 11,8 2,4

27,5 5,8 45,4

20,6 11,6 55,7

16,0 31,1 45,8

7,2 27,7 60,5

7,4 24,3 64,9

7,4 23,4 66,4

9,4 21,0 67,2

[Source: SARB Quarterly Bulletin, September 2012]

3.2.1

Define the secondary sector.

(2)

3.2.2

Calculate the value of the primary sector's contribution (A) in 1981.

(2)

3.2.3

Briefly describe the trend with regard to the contribution of the various sectors to the GDP from 1912 to 2011.

(6)

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3.3

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Study the graph below and answer the questions that follow. POPULATION FIGURES OF SOUTH AFRICA

Population/Millions 54 53,5 53 52,5 52 51,5 51 50,5 50 2010

2015

2020

2025 Years

2030

2035

2040

[Source: Enjoy Economics 2011]

3.3.1

What is the main method used to count a population?

(2)

3.3.2

Name a factor that influences the population growth rate of a country.

(1)

3.3.3

Describe the trend illustrated by the graph.

(3)

3.3.4

During which year will the South African population be at its highest?

(2)

What is the expected population figure of South Africa for the year 2040?

(2)

3.3.5 3.4

Explain the concept globalisation.

3.5

Briefly discuss the impact of colonialism on the economic development of South Africa. (4 x 2)

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QUESTION 4: MACROECONOMICS AND ECONOMIC PURSUITS 40 MARKS – 25 MINUTES 4.1 4.2

Name FOUR economic consequences of the mining and industrial stage. (4 x 1)

(4)

Study the diagram below and answer the questions that follow. 2-SECTOR CIRCULAR FLOW MODEL

market for factors of production

labour

income

B

household

A

expenditure C market for goods and services

4.2.1

Label A, B and C.

(3)

4.2.2

Name ONE leakage that can influence the money flow in this model.

(1)

How will the inclusion of the foreign sector affect the flow of goods and services in the circular flow?

(2)

Describe the real flow and money flow that occur between households and government, if the government were included in the above circular flow model.

(4)

4.2.3 4.2.4

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4.3

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Study the cartoon below and answer the questions that follow.

[Source: Enjoy Economics, 2011]

4.4 4.5

4.3.1

Define the term market.

(2)

4.3.2

What type of trade is illustrated in the cartoon?

(2)

4.3.3

Explain the problems that would exist if our society did not have any money as a medium of exchange. (3 x 2)

(6)

Briefly discuss the impact of HIV/Aids on the South African labour force. (4 x 2)

(8)

Differentiate between absolute scarcity and relative scarcity.

(2 x 4)

TOTAL SECTION B:

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SECTION C Answer any ONE of the two questions from this section in the ANSWER BOOK. Your answer will be assessed as follows: STRUCTURE OF ESSAY Introduction Body: • Main part: Discuss/Distinguish/Differentiate/Explain/Analyse /Evaluate/Assess • Additional part: Use/Draw/Sketch a graph/diagram …/ Deduce …/Outline/Briefly explain/Expand on .../Your own opinion Conclusion Interpretation/Rubric TOTAL QUESTION 5: MACROECONOMICS

MARK ALLOCATION Max. 3 Max. 24 Max. 6 Max. 2 Max. 5 40

40 MARKS – 25 MINUTES

Discuss the phases and reasons of business cycles. Draw a well-labelled typical business cycle to support your discussion. QUESTION 6: ECONOMIC PURSUITS

[40]

40 MARKS – 25 MINUTES

Discuss the history of banking in South Africa, highlighting early development, private banks and imperial banks. In addition, explain how technology has reduced the traditional banking activities of commercial banks.

[40]

TOTAL SECTION C: GRAND TOTAL:

40 150

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1 GRAAD 12

NATIONAL SENIOR CERTIFICATE

GRADE 10

ECONOMICS P1 EXEMPLAR 2012 MEMORANDUM

MARKS: 150

This memorandum consists of 13 pages.

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SECTION A (COMPULSORY) QUESTION 1 1.1

MULTIPLE-CHOICE QUESTIONS 1.1.1 1.1.2 1.1.3 1.1.4 1.1.5 1.1.6 1.1.7 1.1.8

1.2

(8 x 2)

(16)

(8 x 1)

(8)

(6 x 1)

(6)

TOTAL SECTION A:

30

MATCHING ITEMS 1.2.1 1.2.2 1.2.3 1.2.4 1.2.5 1.2.6 1.2.7 1.2.8

1.3

C B A B C B B C

C I A D G A B F

WORDS IN BRACKETS 1.3.1 1.3.2 1.3.3 1.3.4 1.3.5 1.3.6

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expansion intermediate inflation labour force Industrial Reserve/SARB

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SECTION B Answer any TWO of the three questions from this section in the ANSWER BOOK. QUESTION 2 2.1

FOUR factors of production • • • •

2.2

2.3

labour capital entrepreneurship natural resources

(4 x 1 )

(4)

2.2.1

Consumption

2.2.2

Tea-cup

2.2.3

Household expenditure

(1)

2.2.4

• Immediate consumption – goods consumed at the same time. E.g. a sandwich. • Deferred consumption – goods that can be consumed at a later stage/date/time e.g. a bag of sugar. (Any other relevant answer) (2 x 3)

(6)

The difference between the selling price and cost price. (Any other relevant answer)

(2)

Prices had to be reduced due to excess stock. Poor trading conditions resulted in a lower demand for their goods. (2 x 2)

(4)

• People will rather spend money on clothing and food than on jewellery during difficult trading conditions • Mr Price is specialises in clothing and not jewellery. • Durable goods are not as regularly replaced as semi-durable goods. • Cost of jewellery is much higher than the cost of clothing. (Any other relevant answer) (Any 2 x 2)

(4)

2.3.1 2.3.2

2.3.3

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/saucer

(2) /teapot

/table

/chair

(Any 1 x 1)

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Characteristics by which markets can be classified • The number of suppliers Some markets have a single supplier e.g. Eskom in the electricity market, while in others there may be a large number of suppliers e.g. clothing stores. • Nature of products Some markets have goods which are identical/ homogenous , while other markets have differentiated products . Mass produced goods use brand names to make them unique and different. • Barriers to entry In some markets people are free to enter e.g. a flea markets while in some entry is restricted e.g. cellphone companies - a licence is required. • Availability of information Some markets have complete information about market conditions e.g. JSE. While other markets may have incomplete information e.g. the food market. (Any 2 x 4)

2.5

(8)

Difference between economic goods and free goods

• • • • • •

ECONOMIC GOODS Scarce Have utility and value Part of people's wealth Belong to somebody e.g. property/money/ groceries Commands a price (Any 2 x 2)

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• • • • • •

FREE GOODS Plentiful They have utility and no exchange value Does not determine wealth They do not belong to anyone e.g. air/sea/wind Does not command a price (Any 2 x 2)

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QUESTION 3 3.1

FOUR examples of commodity money • • • • • •

3.2

3.3

gold copper scarce metals barley wine beads

(Any 4 x 1)

(4)

Concerned with the manufacturing sector /transformation sector of the economy. /Second stage of the production process.

(2)

3.2.2

A – 23,1

(2)

3.2.3

Primary sector declined from being the highest to the lowest contributor to the GDP (48,8% to 11,8%) Secondary sector was initially low then stabilised to about 24% Tertiary sector steady increase in contribution to the GDP./ It is the highest contributor to the GDP.

(6)

3.3.1

Census

(2)

3.3.2

Net migration Birth rate (Fertility rate) Death rate (Mortality rate)

(1)

Growth in the population from 2010–2040 OR A steady increase in the population growth and then a steady decrease. (Any other relevant answer)

(3)

3.3.4

2030

(2)

3.3.5

Approximately 53,3 million

(2)

3.2.1

3.3.3

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Globalisation • Refers to the increase in trade between countries , making the world a global village. • It integrates both economies and societies. • The reduction in trade barriers, e.g. has increased globalisation. • The improvement of international transport and communication, especially the internet /has further increased trade between countries. • The introduction of trading alliances/trading blocs, e.g. EU has further expanded trade (Any 4 x 2)

3.5

(8)

Impact of colonialism on the economic development of South Africa •

Positive influences Building of infrastructure. Education and economic development through trade.



Negative influences Introduction of new diseases affected the health of indigenous people. Denying of political and economic rights of indigenous people. Discriminatory laws The land was exploited to the advantage of the mother country. Local people were deprived of property rights. Disregard and disrespect of local traditions. (Any 4 x 2)

(8) [40]

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QUESTION 4 4.1

FOUR economic consequences of the mining and industrial stage • • • • •

4.2

development of a market economy urbanisation Improved transport improved communication other services, e.g. financial services

4.2.1

4.2.2

4.3

(Any 4 x 1)

A - business sector B - expenditure C - goods and services • Savings • Taxes • Imports

(4)

(3)

(Any 1 x 1)

(1)

4.2.3

Through imports and exports

(2)

4.2.4

Households pay tax (money flow) to government while the government supplies collective goods and services (real flow) to the households (4 x 1)

(4)

A market is any place where the buyers and sellers come together to determine price. (Any other relevant definition)

(2)

4.3.2

Bartering

(2)

4.3.3

• Products to exchange may not always be available at the same time. • A double coincidence of wants is required • It may be difficult to determine the value of a product for exchange purposes. • Goods could not always be divided into smaller units. (Any 3 x 2)

(6)

4.3.1

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Impact of HIV/Aids on the South African labour force • • • • • • • •

4.5

8 NSC – Grade 10 Exemplar – Memorandum

Loss of income as workers become sick Affects labour productivity It eventually results in a decrease in the labour force It burdens the remaining workers within the household. Financial dependency on the government increases. e.g. grants Decreases consumer spending Increased strain on healthcare system. (e g) increase in ARV's Decreases Gross Domestic Product (GDP) (Any 4 x 2)

(8)

Absolute and relative scarcity • Absolute scarcity exists when it is not possible to increase the supply of a good, because resources are finite. It usually applies to goods and services that are essential to human survival, e. g. food and water • Relative scarcity is when you choose resources to do one thing instead of another, e.g. if we decide to use resources for the production of cake instead of milk, milk will then be relatively scarce (2 x 4) TOTAL SECTION B:

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SECTION C Answer any ONE question from the two questions from this section in the ANSWER BOOK. STRUCTURE OF ESSAY: Introduction Body: • Main part: Discuss/Distinguish/Differentiate/Explain/Analyse /Evaluate/Assess • Additional part: Use/Draw/Sketch a graph/diagram …/ Deduce …/Outline/Briefly explain/Expand on .../Your own opinion Conclusion Interpretation/Rubric TOTAL

MARK ALLOCATION: Max. 3 Max. 24 Max. 6 Max. 2 Max. 5 40

QUESTION 5 Discuss the phases and reasons of business cycles. Draw a well-labelled typical business cycle to support your discussion. INTRODUCTION Business cycles refer to continuous periods of expansion economic activity.

and contraction

of (Max. 3)

1. Period of Recession • During a recession, jobs are lost and there is a feeling of pessimism • Employment levels drop, and there is a decrease in economic activity, and the economy slows down 2. Period of Depression • During a depression money is in short supply leading to a further decline in spending • There is a negative impact on investment spending • When economic activity is at its lowest, a trough is reached at point D • There is competition for jobs and the cost of production decreases • This encourages foreign trade and leads to a recovery. 3. Period of Recovery • During a recovery, production increases and more jobs are created • Business confidence rises and there is increased spending by firms • There is increased economic activity and the country enters into a period of prosperity Copyright reserved

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4. Period of Expansion • • •

During a period of expansion there is a great degree of optimism Employment levels rise, salaries and wages rise and spending increases A peak is reached. A larger amount of money is in circulation and this leads to an inflationary situation

Reasons for Business Cycles Exogenous factors • • • • •

Factors that originate from outside the economic system and act as trigger mechanisms for contractions and expansion, e.g. Weather (natural disasters) conditions , changes in weather conditions affect agricultural production and this has a major influence on the economy. Political shocks and technology shocks cause changes in productivity that cause business cycles. Structural changes cause economic resources to become unneeded in one sector and moves to another sector. Money supply refers to government either increasing or decreasing the money supply which alters equilibrium in the markets.

Endogenous factors • • • • • •

They are factors that are part of the economic system. The expansion phase also contains mechanisms that eventually cause a contraction of economic activity. As the level of economic activity increase total spending in the economy increases as well. This causes an increase in imports which negatively affects the balance of payments and leads to a depreciation of the exchange rate. Increase in interest rates due to increased borrowing (negative effect on the economy). Positive perceptions of the economy will lead to an increase in spending and vice versa. (Max. 24)

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BUSINESS CYCLE Level of Economic Activity

F

Trend line B

E C

A D

Marks allocation for graph: • Labelling of axes = 2 marks • Trend line = 1 mark • Shape of cycle = 1 mark • AB – prosperity = 1 mark • BC - recession = 1 mark • CD - depression = 1 mark • DE - recovery = 1 mark • B - peak = 1 mark • D - trough = 1 mark

0

Time (in years) (Max. 6)

CONCLUSION Business cycle are long term trends and can last from 3 to 5 years or even 10 years (Any other relevant conclusion)

(Max. 2)

Use the following rubric to assess the above discussion: MARKS 1 2 3 4 5

INTERPRETATION OF TOPIC Learner has shown limited understanding of topic and has given an inadequate response. (1–10) Learner has interpreted topic correctly but has not given the desired response. (11–19) Learner has interpreted topic correctly and has given some elements of the desired response. (20–25) Learner has interpreted topic correctly and has linked some relevant substantive facts to the topic. (26–30) Learner has interpreted topic correctly and has linked the relevant substantive facts to the topics. (31–35)

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QUESTION 6 Discuss the history of banking in South Africa highlighting early development, private banks and imperial banks. In addition, explain how technology has reduced the traditional activities of commercial banks. Introduction The evolution of money made it necessary for institutions to be established to handle financial transactions. Any other relevant definition. (Max. 3) Body Early Development • • • • • • •

The goldsmiths were the first financial institutions they kept the gold for safe-keeping. The first bank was the Lombaard that was established in 1793 and it was owned and controlled by the government. Its purpose was to provide money in the time of serious shortage. This bank received money from the DEIC They only lent to those who could provide sufficient security. e.g. land /gold This bank opened district branches to provide for the demand in savings and loans in rural areas. It was closed in 1942.

Private Banks • • • • • • • •

The first private bank was established in 1836 in Cape Town. More banks were established in the Cape Colony, Natal and Orange Free State. They were private district banks that were owned and managed by the local people. The main function of the banks was to receive savings, issue bank notes and provide credit to the clients. By 1861 there were already 27 private banks. Most of these banks failed because credit was far too easily extended /money was lent to family and friends who could not repay. There was no limit on the issuing of notes They were not compelled to issue bank statements.

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Imperial banks • • • • • • • • •

They were imperial banks because they had head offices internationally. Most private banks were taken over by imperial banks. because of the capitalistic nature of the South African economy. Many branches were opened in South Africa. The London Bank of South Africa opened in 1861. The Standard Bank of British South Africa opened in 1862. These banks were branches of successful foreign banks. They had large amounts of capital and their operations were conducted properly. By 1892 nearly all private banks were taken over by imperial banks. In 1927 only 4 different banks were left- Standard Bank, Barclay's Bank, Nederlands Bank (Nedcor) and the Stellenbosch District Bank. (Max. 24)

How has technology reduced the traditional activities of commercial banks? • • • • • •

With technology electronic banking (e-banking) has made it convenient to conduct banking transactions. It started with the use of ATMs and now includes telephone banking / direct account payments /Electronic Funds Transfer /cellphone banking and online banking . E-banking allows bank clients to conduct business via the internet. The bank is no longer the most important building you visit first. Electronic banking has removed the necessity of banking personnel who facilitates transactions. Banking can now be done 24 hours a day. (Internet) (Max. 6)

CONCLUSION Today banks are consolidating especially to gain international capital power. e.g. takeover of ABSA by Barclays. (Max. 2) Use the following rubric to assess the above discussion: MARKS 1 2 3 4 5

INTERPRETATION OF TOPIC Learner has shown limited understanding of topic and has given an inadequate response. (1–10) Learner has interpreted topic correctly but has not given the desired response. (11–19) Learner has interpreted topic correctly and has given some elements of the desired response. (20–25) Learner has interpreted topic correctly and has linked some relevant substantive facts to the topic. (26–30) Learner has interpreted topic correctly and has linked the relevant substantive facts to the topics. (31–35) TOTAL SECTION C: GRAND TOTAL

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40 150