Practice CIMAPRA17-BA1-1-ENG Exam Online

Question 1

Which of the following economic conditions is likely to lead to demand-pull inflation?

A : An increase in interest rates and a rise in the world price of oil

B : An increase in government spending and firms operating at full capacity

C : Increased monopoly power in goods and labor markets

D : A worsening balance of payments deficit and a rising exchange rate

Answer: B

Question 2

Which of the following is a feature of nol-for-profit organisations (NFPs)?

A : They have restricted flows of income

B : They sometimes have shareholders

C : Their objectives can vary greatly

D : They use resources inefficiently

Answer: C

Question 3

Bishops Financial Services has outsourced its HR Department to Resources4U.

Which of the following is most likely to be considered when deciding to outsource parts of the business to another company?

A : Resources4U's lack of business history

B : The cost of increasing the number of staff on the payroll

C : The small size of Bishops Financial Services as a business

D : The possibility of contract renegotiation at a future date

Answer: A

Question 4

Company A is looking to protect itself from transaction exchange rate risk.

Company A does not require 100% of the value of transaction to be protected, and it would like the method it uses to have the following characteristics

* An agreed exchange rate for a specified period where both parties have a legal obligation

* A separation of the contract guaranteeing the pnce of the currency from the underlying transaction.

Which of the following would best provide the type of protection from exchange rate risk company A wants?

A : Future

B : Option

C : Forward contract

D : Floating exchange rate

Answer: C

Question 5

Which of the following are the likely consequences, in the domestic of a county, of an increase in interest rates?

1. A rise in demand for capital goods

2. A fall in demand for consumer good.

3. A fall in demand for housing

4. A rise in the exchange rate.

A : 2,3 and 4

B : 1, 3 and 4

C : 1, 2 and 4

D : 1, 2 and 3

Answer: D

Name:	BA1 - Fundamentals of Business Economics (2017 SYLLABUS) (Online)
Exam Code:	CIMAPRA17-BA1-1-ENG
Certification:	CIMA Certificate in Business Accounting
Vendor:	CIMA
Total Questions:	471
Last Updated:	Apr 22, 2024

CIMA CIMAPRA17-BA1-1-ENG