Hello!
The reason why people first began flocking to Cape Town in the 1890s was that Gold was discovered.
Cape Town is the second most populous city in South Africa, after Johannesburg. It was a small settlement from 1652 to the 1890s when immigrants began flocking to South Africa because gold and diamond deposits were discovered. The industry was the foundation for an industrialized society, and Cape Town, as the primary port in the region, was highly benefitted from the diamond and gold trade.
The correct answer is "D)".
<em>Inflation</em> is the sustained increase in the price of goods and services in a given economy. This means that if goods suffer from inflation in a given period, you will be able to buy less for the same money in the lapse of that period.
Your money is in the bank and grows 5% over a year. However, the price for goods and services (inflation) grows 7% during that same period. As a consequence, regardless of the growth of your savings <em>(nominal return)</em>, you will have a reduction in your purchasing power of 2% <em>(real return)</em>.
Did you just copy and paste your whole test?
