Free CIMA BA1 Practice Test & Real Exam Questions
A binding financial contract that can be used to hedge exchange rate risks by fixing the rate of exchange at a fixed date, and can be traded in financial markets, is known as:
Correct Answer: A
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Which of the following provide possible explanations for the existence of a structure of interest rates?
(i). Borrowers having different risk profiles
(ii). Lenders wishing to lend for different time profiles
(iii). The market for loanable funds being perfectly competitive
(iv). The existence of margins between borrowing and lending rates
(i). Borrowers having different risk profiles
(ii). Lenders wishing to lend for different time profiles
(iii). The market for loanable funds being perfectly competitive
(iv). The existence of margins between borrowing and lending rates
Correct Answer: C
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Which of the following influences explains why the average costs of a firm will rise in the short run?
Correct Answer: C
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Which of the following statements defines a diseconomy of scale?
Correct Answer: D
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A bottle of brandy costs £25 in Country X, including both unit tax and ad valorem tax. These taxes are applied throughout the production process.
Which of the following applies to this particular scenario? Select ALL that apply.
Which of the following applies to this particular scenario? Select ALL that apply.
Correct Answer: A,D
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All of the following are examples of structural unemployment except which one?
Correct Answer: C
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Central banks undertake all of the following roles except one. Which ONE is the exception?
Correct Answer: D
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The interest rate at TrowBank is currently running at 7%. The number of customers borrowing to invest has fallen drastically.
Which of the following explains why this is the case?
Select ALL that apply.
Which of the following explains why this is the case?
Select ALL that apply.
Correct Answer: A,D
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Which of the functions of a financial intermediary is described by the following statement 'converts a flow of short-term deposits into a supply of long term loans'?
Correct Answer: A
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Every year a household allows its bank account to become overdrawn for 3 months to pay for its annual holiday. Which one of the following statements correctly describes this?
Correct Answer: D
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Which ONE of the following statements best describes the impact of a government price floor (minimum price) set below free market price?
Correct Answer: B
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The central bank can increase liquidity in the banking system, by:
Correct Answer: A
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All of the following are sources of finance for business except which one?
Correct Answer: A
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All of the following items would appear as a credit on the current account of a country's balance of payments accounts except which one?
Correct Answer: A
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