CIPS A6 Exam Actual Questions

Question No. 1

Which of the following best describes the economic term 'monetary policy'?

AThe government controlling economic activity by regulating the level of taxation

BThe government controlling economic activity by reducing the budget deficit

CThe government controlling economic activity by influencing the rate of interest

DThe government controlling economic activity by reducing the national debt.

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Correct Answer: A

Question No. 2

Which of the following best describes the pricing policy known as 'skimming'?

AA low price set to gain acceptance of a new product

BReducing prices to increase sales and distribution

CA high price aimed at a quick recovery of costs

DA price set in line with that charged by competitors.

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Correct Answer: A

Question No. 3

A price set in line with that charged by competitors.

APrivate Sector Business Results

BPrivate Sector Borrowing Requirement

CPublic Sector Borrowing Requirement

DPublic Sector Borrowing Review.

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Correct Answer: B

Question No. 4

Which of the following headings would appear in the current account of a country's balance of payments?

ATransactions in goods and services

BTransactions in external assets and liabilities

CTransactions in large sums of money

DTransactions in stocks and shares.

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Correct Answer: C

Question No. 5

Which of the following best describes the term 'inflation'?

AToo little money chasing too many goods

BToo much money chasing too few goods

CToo little money chasing too few goods

DToo much money chasing too many goods.

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Correct Answer: A

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