2. Latisha works for a car dealership in town . She saves $ 500 from the $ 2600 she earns every two weeks . Yesterday she used part of her savings to make a $ 4000 down payment on a new car . Draw and label a simple circular - flow model . Place both the transactions described on your model , and describe the flow between households and firms that results .
1.2. Discuss the evolution of the payment system
Using South African practical examples, explain the functions of money and clearly distinguish
between the M1, M2 and M3 aggregate measures for money supply