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BA1 Exam Dumps - CIMA Certificate Questions and Answers

Question # 14

All of the following were features of the financial crisis of 2008 except one. Which ONE is the exception?

Options:

A.

A rise in the volume of mortgage defaults

B.

A chronic shortage of liquidity in the banking system

C.

A severe contraction in inter-bank lending

D.

A sharp fall in rate of interest on inter-bank lending

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Question # 15

All of the following would be likely to result from the process of globalization except one. Which ONE is the exception?

Options:

A.

Increased foreign competition in domestic markets

B.

A widening of price differentials between countries

C.

For businesses, wider access to supplies of inputs

D.

Increased international capital flows between countries

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Question # 16

Financial intermediation is the process by which

Options:

A.

Net savers and net borrowers are brought together.

B.

Banks create credit on the basis of their liquid assets.

C.

The central bank acts as a link between commercial banks and the government.

D.

Banks provide commercial services for their customers.

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Question # 17

Which of the following is a primary objective of a not-for-profit organisation?

Options:

A.

To satisfy the needs of a particular sector of society

B.

To maintain the growth of the organisation.

C.

To make a profit.

D.

To continue to exist.

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Question # 18

Which of the following is NOT achieved by the price mechanism in a market economy?

Options:

A.

Signaling of consumers' requirements

B.

Allocation of adequate resources for future investment

C.

Rationing of scarce resources between potentially unlimited demands

D.

Setting of rewards to factors of production

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Question # 19

RubTech has decided to build a new rubber production facility just outside the semi-rural town of Pettisbury. The majority of workers at the plant are to be sourced from abroad.

Which of the following could potentially be negative externalities of the decision to build the production facility?

Options:

A.

Production processes

B.

Rood congestion

C.

The decision to source workers from abroad

D.

Antisocial behaviour

E.

The high unemployment rate in the local area

F.

The poor infrastructure in the local area

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Question # 20

Which of the following is the most likely cause of a demand deficient unemployment (or cyclical unemployment)?

Options:

A.

A fall in domestic interest rates

B.

Significantly lower labor costs available in a developing country

C.

Improvement in the terms of trade

D.

Excess aggregate demand in the economy of a trading partner

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Question # 21

The government of Country Z imposes a tariff on all imports of coal from other countries Which THREE of the following are possible effects of this decision in Country?

Options:

A.

The cost of living will fall.

B.

Employment in the coal industry will increase

C.

The balance of payment will improve.

D.

Government's revenue will improve.

E.

Coal producers will adopt new technologies to improve efficiency

F.

More resources will be allocated to alternative energy sources

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Question # 22

Which one of the following would raise both national income and disposable income ?

Options:

A.

An increase in transfer payments

B.

A reduction in rates of personal income tax

C.

An increase in business profits

D.

A rise in the rates of personal income tax

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Question # 23

PetsPlus Pic. has outsourced its marketing operations to the recently established marketing firm MarketMe. MarketMe has devised and distributed an online survey on behalf of PetsPlus Pic, asking customers to

evaluate the products they purchase from the company.

An example of a question from the survey is as follows:

'What do you think of PetsPlus's decision to outsource its marketing operations to a marketing firm?

Which of the following best describes why this question will not yield good information for PetsPlus?

Options:

A.

Relevance

B.

Accuracy

C.

Reliability

D.

Cost efficiency

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Exam Code: BA1
Exam Name: Fundamentals of Business Economics
Last Update: Mar 31, 2025
Questions: 468
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