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CIMA Updated BA1 Exam Questions and Answers by cassidy

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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: cassidy
Question 16

During recessions many governments borrow to give them funds to increase government expenditure on job creation schemes. They then repay the borrowed funds during the boom phase. This is an example of which of the following?

Options:

A.

Aggregation

B.

Medium term borrowing

C.

Funding

D.

Open market operations

Discussion
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Question 17

The incentive for two countries to trade with each other would be reduced or removed by

(i). people in both countries having similar tastes and preferences

(ii). per capita income being much higher in one country than in the other

(iii). transport costs between the two countries exceeding the output gain from trade

(iv). the industries in both countries suffering from significant decreasing returns to scale

Options:

A.

(i) and (ii) only

B.

(ii) and (iv) only

C.

(iii) and (iv) only

D.

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

Discussion
Question 18

What international convention regulates banking?

Options:

A.

Basel 3

B.

GATT

C.

G20

D.

Competition Act

Discussion
Question 19

Which of the following statements about government debt is false?

Options:

A.

It is exclusively traded by the Central Bank

B.

Individuals can buy it from stock brokers

C.

Notes and coins in circulation make up a very small part of government debt

D.

It can be issued by Local as well as Central government

Discussion
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