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Free CIMAPRA17-BA1-1 Exam Braindumps (page: 32)

Page 11 of 118
PDF with 468 Questions

Which of the following best defines a fiscal policy?

  1. A policy that increases government spending to increase national income
  2. A policy which seeks to influence the economy through manipulation of government spending and taxation
  3. A policy aimed at influencing the level of aggregate demand in the economy
  4. A policy which controls inflation by controlling the amount of money in the economy

Answer(s): B



Identify from the list below the financial instrument that is not a method of government borrowing:

  1. Cash (i.e. notes and coins)
  2. Taxation
  3. Contributions to state-provided pensions
  4. Government bonds

Answer(s): B



All of the following would result from a shift from direct to indirect taxes except which one?

  1. An increase in the prices of products due to inflation.
  2. A reduction in the disincentive to work and effort.
  3. A more progressive taxation system.
  4. A shift in the burden of taxation towards lower income groups.

Answer(s): C



A rise in interest rates in an economy would lead to all of the following except which one ?

  1. A rise in the exchange rate for the currency
  2. A rise in personal saving
  3. An increase in business investment
  4. A rise in public expenditure

Answer(s): C






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