Most Recent CIMAPRA17-BA1-1 Exam Questions & Answers

Prepare for the CIMA BA1 - Fundamentals of Business Economics exam with our extensive collection of questions and answers. These practice Q&A are updated according to the latest syllabus, providing you with the tools needed to review and test your knowledge.

QA4Exam focus on the latest syllabus and exam objectives, our practice Q&A are designed to help you identify key topics and solidify your understanding. By focusing on the core curriculum, These Questions & Answers helps you cover all the essential topics, ensuring you're well-prepared for every section of the exam. Each question comes with a detailed explanation, offering valuable insights and helping you to learn from your mistakes. Whether you're looking to assess your progress or dive deeper into complex topics, our updated Q&A will provide the support you need to confidently approach the CIMAPRA17-BA1-1 exam and achieve success.

The questions for CIMAPRA17-BA1-1 were last updated on Jan 18, 2025.

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Question No. 1

The management of Pennyfarthing's Toy Bazaar requires financial advice, but is unsure of which type of bank to approach to acquire this. The company receives a profit of 1,000,000 a year, and currently operates in

Europe and North America.

Which of the following reasons explains why Pennyfarthings Toy Bazaar should use a wholesale bank?

AIt has a profit of 100,000

BIt has international operations

CIt uses the Alternative Investment Market

DIt has issued new shares to members of the public

EIt is a medium-sized business

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Correct Answer: A, B

Question No. 2

If a government adopted an expansionary fiscal policy of cutting direct taxes, the businesses that would benefit most would be those whose products:

AAre largely bought on credit

BAre largely exported

CHave a high price elasticity of demand

DAre sold mainly to individual consumers

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Correct Answer: D

Question No. 3

Following a 10% reduction in the value of its currency, the volume of imports into the country falls by 10%, whilst the volume of exports rises by 15%.

Which of the following effects will occur?

ABalance of payments will improve

BBalance of payments will deteriorate

CTerms of trade will improve

DThe central bank will be forced to borrow more foreign exchange to cover the shortfall

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Correct Answer: A

Question No. 4

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

A(i) and (ii) only

B(ii) and (iii) only

C(iii) and (iv) only

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

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Correct Answer: D

Question No. 5

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

AAn increase in the prices of products due to inflation.

BA reduction in the disincentive to work and effort.

CA more progressive taxation system.

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

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Correct Answer: C

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