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CIMA Updated BA1 Exam Questions and Answers by roan

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CIMA BA1 Exam Overview :

Exam Name: Fundamentals of Business Economics
Exam Code: BA1 Dumps
Vendor: CIMA Certification: CIMA Certificate
Questions: 468 Q&A's Shared By: roan
Question 28

A financial intermediary takes the small deposits of millions of savers and uses them to buy an issue of government (treasury) bills and bonds.

Identify from the list below the principle this illustrates:

Options:

A.

Maturity transformation

B.

Aggregation

C.

Risk transformation

D.

Money transmission

Discussion
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Question 29

Which TWO of the following business costs are directly affected by a rise in the interest rate*? D The cost of procuring equity finance

Options:

A.

The cost of complying with government regulations.

B.

The cost of borrowing from private lenders.

C.

The cost of accessing government subsidies

D.

The cost of procuring intermediate goods.

Discussion
Question 30

A magazine currently has a circulation of 500,000 copies per year at a price of $5 per copy Following a market survey it has been suggested that the price of each copy should be reduced to $4 50. It is expected this will lead to an increase in circulation of 25.000 copies per year.

What is the price elasticity of demand of the magazine?

Options:

Discussion
Question 31

According to the principle of comparative advantage which of the following explains how country V may benefit from international trade?

Options:

A.

Specialisation and international trade will only be successful if tariffs are used to protect country V's economy.

B.

Jobs historically done by country V's nationals have been off-shored to countries with cheaper labour costs.

C.

Country V can specialise in exporting oil which it can produce relatively cheaply, and import goods.

D.

Country V will only benefit from international trade if another country loses.

Discussion
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