Pass the CIMA CIMA Certificate BA1 Questions and answers with CertsForce

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Questions # 91:

Commercial banks can create credit because:

Options:

A.

central banks are 'lenders of last resort' and provide commercial banks with cash when needed


B.

banks are required to hold enough capital to meet bad debts.


C.

banks hold accounts at the central bank which are available as cash.


D.

customers only want some of their deposits in the form of cash in any given period.


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Questions # 92:

A hairdressing salon can either invest in

1. New. more comfortable chairs at a cost of $5,000

2. New shop windows at a cost of $4,000

Over the next five years. Investment 1 will generate an additional amount of profit whose present value is $6,000. while Investment 2 additional amount of profit whose present value is $5,500

What is the net present value of the best project? Give your answer to the nearest whole dollar.


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Questions # 93:

Which of the following is also known as the International Bank for Reconstruction and Development?

Options:

A.

The European Central Bank


B.

The World Trade Organisation


C.

The International Monetary Fund


D.

The World Bank


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Questions # 94:

The following table reports are for five hotels belonging to the same hotel chain, the rank in terms of sales performance (with 1 - best average score obtained in customer reviews, and the rank in terms of average score from customer reviews (with 1 = best average ..

Calculate the Spearman's rank correlation coefficient to one decimal place:

Question # 94


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Questions # 95:

In recent years, consumer groups have become more vocal in calling for the boycott of producers whose suppliers do not comply with international regulations on workplace safety and child labour A fashion company that outsources its production to low labour cost countries should include this phenomenon in which part of their PESTEL framework?

Options:

A.

T


B.

E


C.

S


D.

P


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Questions # 96:

An institution offers an 8 percent compound interest rate annually for six years, for an investment of S250,000 What is the total amount of interest that would be received over the six years'?

Options:

A.

$370,000.00


B.

$396718.58


C.

$146,718.58


D.

$120.000 00


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Questions # 97:

Assuming Country A has a floating exchange rate which of the following would lead to a fall of the exchange rate for Country A and which rise m the exchange rate for Country A.

Complete the table below by matching the relevant label on the exchange rate of the scenarios listed.

Question # 97


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Questions # 98:

Which of the following would tend to make the market supply of a good price inelastic?

Options:

A.

There are few barriers to entry into the industry.


B.

Many firms in the industry have unused production capacity.


C.

Most firms in the industry have high stock levels of finished goods.


D.

Newly employed workers in the industry require high levels of initial training.


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Questions # 99:

A company currently sells 10,000 bottles of "bright pink" nail varnish every year at $5 per bottle If the price is reduced to $4.50 per bottle it is expected that the company will sell an extra 2,000 bottles

What is the price elasticity of demand of the nail varnish?

Options:

A.

-2.0


B.

+2.0


C.

-0.5


D.

+0.5


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Questions # 100:

Company A uses the trend equation, y = a + bt, to forecast sales, where y are sales and t are time periods measured in units At time period zero, sales were $865,000 In period 5. sales have increased to $1.245.000 Calculate coefficient b (without any decimal points):


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