Pass the CIMA CIMA Certificate BA1 Questions and answers with CertsForce

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Viewing questions 81-90 out of questions
Questions # 81:

In a supply and demand diagram, other things remaining the same, an increase in production costs will normally shift:

Options:

A.

The demand curve to the right


B.

The supply curve to the right


C.

The demand curve to the left


D.

The supply curve to the left


Expert Solution
Questions # 82:

If the price of a good is held above the equilibrium price, the result will be

Options:

A.

a shortage in the market


B.

a surplus in the market


C.

excess demand for the good


D.

an increase in the demand for the good


Expert Solution
Questions # 83:

Which ONE of the following statements best defines a fixed cost?

Options:

A.

A cost that will not rise from year to year


B.

A cost that rises as efficiency falls


C.

The difference between total cost and average cost


D.

A cost that stays constant as output falls


Expert Solution
Questions # 84:

All of the following are barriers to entry into an industry except which one?

Options:

A.

The existence of significant economies of scale


B.

Important production processes are subject to patents


C.

Low price elasticity of demand for the product


D.

Extensive product differentiation in the industry


Expert Solution
Questions # 85:

Which of the following is the most likely policy response to an economic recession?

Options:

A.

Revaluation of the domestic currency


B.

Deflationary policy to prevent rising inflationary pressure


C.

Reduce aggregate demand by raising interest rates, taxation, and reducing public expenditure.


D.

Raise aggregate demand by lowering interest rates, reducing taxation and raising public expenditure


Expert Solution
Questions # 86:

A business based in Country A. agrees to buy a software package from a company based in Country O tor 20.000 Country O dollars 12 months time. At the time of the contract the exchange rate was 1 O dollar (0$) to 1.5 Country A pounds (A£). When payment ism

Rate is O$1 to A£1 4.

What is the exchange rate gain (+) or loss (-) made by the Country A business?

Give your answer to a whole number.


Expert Solution
Questions # 87:

Which THREE of the following are characteristics of good information?

Options:

A.

Accuracy


B.

Confidentiality


C.

Verifiability


D.

Accessibility


E.

Trustworthiness


F.

Relevance


Expert Solution
Questions # 88:

What does the term 'equity financing' mean?

Options:

A.

A company financing a short term cash flow shortage by borrowing from a financial intermediary.


B.

A company investing its excess liquidity by purchasing shares.


C.

A company selling off some of its tangible assets to pay for debts.


D.

A company financing its liquidity deficit by issuing shares.


Expert Solution
Questions # 89:

A client agrees to invest S100,000 three years from now in a business project, and decides to deposit funds today in a bank account that pays 6 percent compound interest annually.

How much does the client need to deposit in order to be able invest $100,000 in three years time?

Options:

A.

$82,000


B.

$83,961.93


C.

$119101.6


D.

$83,748.43


Expert Solution
Questions # 90:

The following table provides the frequency distribution and cumulative frequencies of the cost of monthly rent for 120 apartments. What is the percentage of apartments whose monthly rent is less than $510?

Question # 90

Options:

A.

21%


B.

50%


C.

25%


D.

41%


Expert Solution
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