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CIMA CIMAPRA17-BA1-1 Exam Questions
BA1 - Fundamentals of Business Economics (Page 13 )

Updated On: 16-Feb-2026
Page 13 of 95
PDF with 468 Questions

All of the following are supply side policies to promote economic growth except which one?

  1. Reduction of marginal rates of income tax.
  2. Tariffs to encourage domestic suppliers of goods.
  3. Deregulation of the financial sector.
  4. Tax relief for business expenditure on research and development.

Answer(s): B



All of the following items would appear as a credit on the current account of a country's balance of payments accounts except which one?

  1. Interest payments on financial assets held overseas.
  2. Exports of manufactured goods.
  3. Outflows of capital.
  4. Expenditure by visiting foreign tourists.

Answer(s): C



A surplus on the current account of the balance of payments can be financed by

  1. An inflow of capital on the capital account.
  2. Lending abroad on the capital account.
  3. A fall in the foreign exchange reserves
  4. A surplus on the government budget.

Answer(s): B



Which ONE of the following would appear as a debit item on a country's balance of payments current account?

  1. Overseas investment by a domestic multinational company
  2. Expenditure in the country by an overseas visitor
  3. A flow of company profits to the parent company based in another country
  4. Payment by an overseas company for services provided in the country

Answer(s): C



All of the following items would appear as a credit on the current account of a country's balance of payments accounts except which one?

  1. Interest payments on financial assets held overseas.
  2. Exports of manufactured goods.
  3. Outflows of capital.
  4. Expenditure by visiting foreign tourists.

Answer(s): C






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