OTE 2601 SUPP SOLUTION 2023, READY

Members of investment stokvels contribute a fixed amount of money usually on a monthly basis. The funds are saved and allowed to accumulate before investment in business ventures. High-budget stokvels operate as financial institutions and are established for the purpose of promoting savings and investments. 1.1.2 Members make fixed contributions to cover funeral expenses. The specific benefits are defined in the constitution of the relevant stokvel and usually include purchase of a coffin and transporting the body. 1.1.3 Property stokvels provide low to middle-income families with a vehicle to invest and build wealth by harnessing the collective's power. The group can purchase bigger and more expensive properties and can benefit from the compounding principle by pooling financial resources. 1.1.4 The common goal of investment stokvels is to accumulate capital by investing in business ventures. Investment stokvels also promote savings through bulk purchases of goods. Such investment stokvels are also referred to as cooperative buying societies. 1.2 All members can view Stokvel account via FNB App, Online Banking and Cellphone Banking. All payouts must be approved by at least 2 signatories for complete security. Grow your savings through a competitive interest rate. No need for cash handling during deposits or pay-outs. Question 2 2.1 A medium of exchange. A standard of deferred payment. A store of wealth. A measure of value. Fiat money is money that does not have intrinsic value and does not represent an asset in a vault somewhere. Its value comes from being declared "legal tender"-an acceptable form of payment-by the government of the issuing country. Representative money is a certificate or token that can be exchanged for the underlying commodity. For example, instead of carrying the gold commodity money with you, the gold might have been kept in a bank vault and you might carry a paper certificate that represents-or was "backed"-by the gold in the vault.