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CIMA BA1 - Fundamentals of Business Economics BA1 - Fundamentals of Business Economics Dumps in PDF

Free CIMA BA1 - Fundamentals of Business Economics Real Questions (page: 8)

Page 8 of 95 BA1 - Fundamentals of Business Economics PDF — 468 Questions

QUESTION: 36 Exam Topic: 1, Exam Pool A

When faced with a recession, the appropriate combination of policies for a government in order to generate a recovery is

Tax cuts, reduced public expenditure and lower interest rates.
Monetary expansion, increases in public expenditure and an appreciation of the exchange rate.
Reduction of the fiscal deficit and increased money supply.
Tax cuts, monetary expansion and a depreciation of the exchange rate.

Answer(s): D

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QUESTION: 37 Exam Topic: 1, Exam Pool A

Which of the following best defines a fiscal policy?

A policy that increases government spending to increase national income
A policy which seeks to influence the economy through manipulation of government spending and taxation
A policy aimed at influencing the level of aggregate demand in the economy
A policy which controls inflation by controlling the amount of money in the economy

Answer(s): B

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QUESTION: 38 Exam Topic: 1, Exam Pool A

Identify from the list below the financial instrument that is not a method of government borrowing:

Cash (i.e. notes and coins)
Taxation
Contributions to state-provided pensions
Government bonds

Answer(s): B

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QUESTION: 39 Exam Topic: 1, Exam Pool A

All of the following would result from a shift from direct to indirect taxes except which one?

An increase in the prices of products due to inflation.
A reduction in the disincentive to work and effort.
A more progressive taxation system.
A shift in the burden of taxation towards lower income groups.

Answer(s): C

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QUESTION: 40 Exam Topic: 1, Exam Pool A

A rise in interest rates in an economy would lead to all of the following except which one ?

A rise in the exchange rate for the currency
A rise in personal saving
An increase in business investment
A rise in public expenditure

Answer(s): C

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