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BA1 Exam Dumps - CIMA Certificate Questions and Answers

Question # 64

Select the best definition of the corporate governance of a company from the list below.

Options:

A.

The structure and functions of the Board of a firm

B.

The systems by which companies are directed and controlled

C.

The composition and duties of the management of a company

D.

The financial and non-financial performance of a company

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Question # 65

All of the following are functions of a central bank except one. Which ONE is the exception?

Options:

A.

Lender of the last resort

B.

Banker to the commercial banks

C.

The conduct of fiscal policy

D.

Regulation of the banking system

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Question # 66

Which of the following best describes the term 'National Debt'?

Options:

A.

Money the government owes to governments of other countries

B.

Money the government must borrow to make up the shortfall between tax revenue and government expenditures

C.

Special assets issued by government to finance wars

D.

The accumulated borrowings by the government in previous years that have not yet been repaid

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Question # 67

The International Monetary Fund uses the funds at its disposal to

Options:

A.

Assist national governments with a budget deficit

B.

Assist national governments to repay their National Debts

C.

Finance specific development projects in Third World countries

D.

Help member countries with temporary balance of payments deficits

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Question # 68

In which of the stages of the trade cycle should the management accountant consider forecasting lower sales than in the previous year?

Options:

A.

Recession

B.

Depression

C.

Recovery

D.

Boom

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Question # 69

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

Options:

A.

An increase in the prices of products due to inflation.

B.

A reduction in the disincentive to work and effort.

C.

A more progressive taxation system.

D.

A shift in the burden of taxation towards lower income groups.

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Question # 70

Which of the following assertions would not be consistent with supply side economics?

Options:

A.

Lower taxation increases national income by reducing disincentives to work and invest

B.

High interest rates may reduce investment expenditure and so harm national income growth

C.

Increasing aggregate demand will not affect national income or the price level

D.

Aggregate supply creates its own demand

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Question # 71

All of the following are examples of structural unemployment except which one?

Options:

A.

Redundancies in shipbuilding caused by competition from abroad.

B.

Falling employment in manufacturing industry resulting from a decline in consumer incomes.

C.

Unemployment in coal mining caused by the advent of new energy sources.

D.

Above average unemployment rates among low skilled workers.

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Question # 72

If in a boom a government adopted a contractionary (restrictive) monetary policy, a typical business would expect to experience:

i. Higher interest payments on its bank borrowing.

ii. Falling credit based sales.

iii. Higher income and corporate taxes.

iv. Lower sales to government agencies.

v. Difficulties in securing working capital

vi. Higher prices for imported components.

Options:

A.

(i), (ii) and (vi) only

B.

(i), (ii) and (v) only

C.

(ii), (iii) and (iv) only

D.

(i), (iii) and (iv) only

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Question # 73

A surplus on the current account of the balance of payments can be financed by

Options:

A.

An inflow of capital on the capital account.

B.

Lending abroad on the capital account.

C.

A fall in the foreign exchange reserves

D.

A surplus on the government budget.

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Exam Code: BA1
Exam Name: Fundamentals of Business Economics
Last Update: Apr 1, 2025
Questions: 468
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