Cima C04 Exam Question No 9

Question No 9:

A slowdown in economic growth in the US would be transmitted to the rest of the world by all
EXCEPT which ONE of the following processes?

A. A fall in US interest rates.
B. A fall in the US demand for imports.
C. A decline in the level of US capital flows to the rest of the world.
D. Falling US stock market prices leading to similar falls in other countries.

Answer: A

Cima C04 Exam Question No 8

Question No 8:

All of the following are benefits for a business from depreciation (reduction) in the rate of exchange for the country’s currency EXCEPT which ONE?

A. The business could charge lower prices for its exports.
B. Imported raw materials used by the business would be cheaper.
C. The business could raise profit margins on exports without losing sales.
D. In its home market, the business would face reduced competition from imports.

Answer: B

Cima C04 Exam Question No 7

Question No 7:

Which ONE of the following would lead a country’s balance of payments current account to move towards a surplus?

A. A rise in commodity imports.
B. An inflow of foreign capital into the economy.
C. An increase in foreign tourism into the country.
D. An increase in government tax receipts.

Answer: C

Cima C04 Exam Question No 6

Question No 6:

Which ONE of the following would lead to a fall in the value of the multiplier?

A. A decrease in the marginal propensity to consume.
B. A fall in the level of public expenditure.
C. Consumers saving a lower proportion of their income.
D. A decrease in the marginal propensity to import.

Answer: A

Cima C04 Exam Question No 5

Question No 5:

All of the following government policies would tend to raise national income over time EXCEPT which ONE?

A. Increased expenditure on the economic infrastructure.
B. Tax cuts to encourage higher demand from consumers.
C. Policies to encourage the training of labour.
D. Financial incentives to encourage personal and corporate saving.

Answer: D