File Info
| Exam | BA1 - Fundamentals of Business Economics Question Tutorial |
| Number | CIMAPRO17-BA1-X1-ENG |
| File Name | CIMA.CIMAPRO17-BA1-X1-ENG.SelfTestEngine.2020-03-31.25q.tqb |
| Size | 95 KB |
| Posted | Mar 31, 2020 |
| Download | CIMA.CIMAPRO17-BA1-X1-ENG.SelfTestEngine.2020-03-31.25q.tqb |
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Demo Questions
Question 1
Quantitative easing, the purchase of government or private securities by the central banks from investors, is an example of:
- contractionary monetary policy.
- contractionary fiscal policy.
- expansionary fiscal policy.
- expansionary monetary policy.
Correct answer: D
Explanation:
Reference: https://www.investopedia.com/ask/answers/040115/what-are-some-examples-expansionary-monetary-policy.asp Reference: https://www.investopedia.com/ask/answers/040115/what-are-some-examples-expansionary-monetary-policy.asp
Question 2
A business has a contractual requirement to pay a sum of $6m in a foreign currency in 12 months time. It takes out a forward foreign exchange contract for this sum.
This is an example of:
- translation risk avoidance
- economic risk reduction
- arbitrage
- hedging
Correct answer: D
Explanation:
Question 3
Which THREE of the following businesses are more likely to fare better during a recession? (Choose three.)
- A construction company specializing in road infrastructure.
- A producer of rice, a staple good.
- A producer of automobiles, a durable good.
- A producer of security equipment, a counter-cyclical good.
- A retailer specializing in fashion, a cyclical good.
- A construction company specializing in private residential accommodation.
Correct answer: ABD
