CIMA CIMAPRA17-BA1-1-ENG BA1 – Fundamentals of Business Economics (2017 SYLLABUS) (Online) Online Training
CIMA CIMAPRA17-BA1-1-ENG Online Training
The questions for CIMAPRA17-BA1-1-ENG were last updated at May 11,2025.
- Exam Code: CIMAPRA17-BA1-1-ENG
- Exam Name: BA1 - Fundamentals of Business Economics (2017 SYLLABUS) (Online)
- Certification Provider: CIMA
- Latest update: May 11,2025
A business would benefit most from an appreciation in the currency of the country in which it is based if:
- A . it exports to other countries a significant proportion of its output
- B . it imports a high proportion of the raw materials and components it uses
- C . in its domestic market it faces competition from imports
- D . its production costs are largely domestic labor costs
At which stage of the trade cycle should management anticipate a rise in interest rates?
- A . Recession
- B . Depression
- C . Recovery
- D . Boom
When faced with a recession, the appropriate combination of policies for a government in order to generate a recovery is
- A . Tax cuts, reduced public expenditure and lower interest rates.
- B . Monetary expansion, increases in public expenditure and an appreciation of the exchange rate.
- C . Reduction of the fiscal deficit and increased money supply.
- D . Tax cuts, monetary expansion and a depreciation of the exchange rate.
All of the following could cause the onset of a recession except which one?
- A . A significant appreciation of the exchange rate
- B . A decline in business investment
- C . A significant fall in personal savings rates
- D . An increase in the government budget deficit
Inflation is undesirable for all of the following reasons except which one?
- A . Inflation decreases the international competitiveness of the business sector.
- B . Inflation distorts the price system and the process of resource allocation.
- C . Inflation shifts wealth from debtors to creditors in an arbitrary fashion.
- D . Inflation makes business forecasting and planning more difficult.
The business sector will be affected by a contraction in the money supply because
- A . Interest rates will tend to fall, thus reducing business costs.
- B . Inflation will fall and thus demand in the economy will expand.
- C . Consumer credit will contract thus reducing consumer demand.
- D . The exchange rate will fall thus making business more internationally competitive.
As a result of a period of rapid economic growth, an economy is likely to experience all of the following except which one?
- A . An improving overseas trade balance.
- B . Falling levels of unemployment.
- C . Increased inflationary pressure.
- D . Rising government tax receipts.
If a government adopted an expansionary fiscal policy of cutting direct taxes, the businesses that would benefit most would be those whose products:
- A . Are largely bought on credit
- B . Are largely exported
- C . Have a high price elasticity of demand
- D . Are sold mainly to individual consumers
Which ONE of the following should NOT be classed as an agent of a firm’s shareholder?
- A . A non-executive director
- B . An executive director
- C . The chair of the company
- D . The firm’s banker
Which of the following best describes a project that has a negative Net Present Value?
- A . A loss making project
- B . A project that doesn’t make enough profit to pay the interest on the money borrowed to invest in it
- C . A project that doesn’t make sufficient returns to fully compensate investors for the funds they invest in it
- D . A project that will only start making profits after the present year has finished
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