1 South Africa sunk deeper into junk territory on Friday (20 November) after Moody's Investors Service joined Fitch Ratings in lowering the country's credit ratings. But what does the latest downgrades mean for the average South African investor?

Question 1.1 Explain the impact of Credit ratings on the South African economy. (3)

Question 1.2 What could this mean for South Africa in a year of the pandemic? (3)

Question 1.3 Discuss any positive remarks you have that would discourage a further downgrade.

2 The prime lending rate were taken from 9.75% in January to an eyebrow[1]raising low of 7% as of late July. Substantial drops like these are so rare as to be nearly unprecedented in our country and offer extraordinary opportunities for investors.

Question 2.1 How do interest rates influence the economy? (2)

Question 2.2 How does interest rate cuts influence you as an investor?