Free CIMA BA1 Exam Dumps Questions & Answers

In fiscal policy, the term automatic stabilizer refers to any factor that

• A.Prevents recessions and booms by ensuring that aggregate demand remains constant.
• B.Operates to reduce cyclical fluctuations in output without active government policy.
• C.That causes aggregate demand to rise in recession and fall in booms.
• D.Prevents the government budget from moving too far into surplus or deficit.

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

• A.A chronic shortage of liquidity in the banking system
• B.A severe contraction in inter-bank lending
• C.A sharp fall in rate of interest on inter-bank lending
• D.A rise in the volume of mortgage defaults

Which of the following best describes a project that has a negative Net Present Value?

• A.A project that will only start making profits after the present year has finished
• B.A loss making project
• C.A project that doesn't make sufficient returns to fully compensate investors for the funds they invest in it
• D.A project that doesn't make enough profit to pay the interest on the money borrowed to invest in it

Company A is looking to protect itself from transaction exchange rate risk.
Company A does not require 100% of the value of transaction to be protected, and it would like the method it uses to have the following characteristics
* An agreed exchange rate for a specified period where both parties have a legal obligation
* A separation of the contract guaranteeing the pnce of the currency from the underlying transaction.
Which of the following would best provide the type of protection from exchange rate risk company A wants?

• A.Future
• B.Option
• C.Floating exchange rate
• D.Forward contract

Which of the following is likely to cause the demand curve of margarine to shift to the left?

• A.A fall in the cost of vegetable oils
• B.A fall in the price of margarine
• C.A fall in the price of bread
• D.A successful advertising campaign by butter producers