Pass the CIMA Certificate BA1 Questions and answers with ExamsMirror

Identify which of the following features does not distinguish redeemable debt apart from equity:

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

All of the following are advantages of a system of floating (flexible) exchange rates except one. Which ONE is the exception?

The following figures relate to a particular economy.

From the above information, it can be correctly concluded that each pound was spent an average of

Calculate the yield to an investor available from the following commercial bill:

Face value$100,000

Market price$98,500

Maturity90 days time

Which of the following might justify a policy of privatization by the government?

(i). Privatization inevitably reduces monopoly power and exploitation in the economy

(ii). Privatization may be expected to increase the efficiency and competitiveness of the economy

(iii). Revenue raised from privatization can reduce the public sector borrowing requirement

(iv). Privatization helps to promote an enterprise culture amongst the population

All of the financial instruments are traded on the long term capital market except one. Which ONE is the exception?

Which of the following might be regarded as benefits of the single currency, the Euro?

(i). Greater freedom for member countries to set their own interest rates

(ii). It is easier to compare prices of consumer goods in all countries using the Euro

(iii). A reduction in transactions costs for trade between countries using the Euro

(iv). Increased economic growth resulting from a more efficient common market

A government can finance a budget deficit by:

i. increasing taxation rates.

ii. Reducing government expenditure.

iii. Selling long term government bonds.

iv. Issuing Treasury Bills.

v. Raising interest rates.

vi. Reducing transfer payments.

£100 of new cash is issued, which is then deposited in a bank which is part of a banking system operating a cash ratio of 10%. The maximum possible increase in the money supply which can follow from this transaction, additional to the initial deposit, is