Free CIMAPRA17-BA1-1 Exam braindumps download (CIMAPRA17-BA1-1 exam dumps Free)

QUESTION: 71 Exam Topic: 1, Exam Pool A

A business would benefit most from an appreciation in the currency of the country in which it is based if:

it exports to other countries a significant proportion of its output
it imports a high proportion of the raw materials and components it uses
in its domestic market it faces competition from imports
its production costs are largely domestic labor costs

Answer(s): B

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QUESTION: 72 Exam Topic: 1, Exam Pool A

Which of the following would result from a depreciation in the exchange rate for a country's currency?

A fall in the foreign exchange price of that country's exports.
ii. A rise in the foreign exchange price of that country's imports.
iii. A rise in production costs for businesses using imported inputs.
iv. A worsening in that country's terms of trade.
A fall in the domestic prices of that country's imports.
vi. A rise in the domestic price of that country's exports.
(i), (ii) and (iv) only
(i), (iii) and (iv) only
(ii), (v) and (vi) only
(iv), (v) and (vi) only

Answer(s): B

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QUESTION: 73 Exam Topic: 1, Exam Pool A

A country is a net oil exporter and the demand for oil overseas is price inelastic. A substantial increase in the world price of oil would tend to

Improve the country's balance of payments on current account
Improve the price competitiveness of manufacturing firms in the country
Cause the country's terms of trade to deteriorate
Increase GDP but not GNP in the country

Answer(s): A

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QUESTION: 74 Exam Topic: 1, Exam Pool A

A country has a trade deficit. The demand for its imports and exports are both price elastic. All of the following would lead to an a reduction in the country's trade deficit except which one?