Free CIMAPRA17-BA1-1 Exam Braindumps
BA1 - Fundamentals of Business Economics Questions 221–225 (page: 46)

Updated On: 9-Feb-2026

Which ONE of the following financial instruments is NOT issued for long term borrowing by the issuer?

  1. Treasury bills
  2. Equities
  3. Treasury bonds
  4. Mortgages

Answer(s): A



What is meant by the term 'mezzanine finance'?

  1. Short-term loans to help a firm through a cash flow crisis
  2. Finance that is neither pure debt nor pure equity
  3. Loans made by non-financial institutions
  4. Loans made in foreign currency

Answer(s): B



Which of the following best describes the term 'National Debt'?

  1. Money the government owes to governments of other countries
  2. Money the government must borrow to make up the shortfall between tax revenue and government expenditures
  3. Special assets issued by government to finance wars
  4. The accumulated borrowings by the government in previous years that have not yet been repaid

Answer(s): D



Identify which of the following features does not distinguish redeemable debt apart from equity:

  1. It has a face value which shows its value at redemption
  2. It will pay a regular set sum of interest
  3. It will have a maturity date when it will mature
  4. It will never be traded on an investment market

Answer(s): D



A business could meet a short term financial need by all of the following except one.
Which ONE is the exception?

  1. Using its cash reserves
  2. A bank overdraft
  3. Issuing shares
  4. Factoring

Answer(s): C



Viewing page 46 of 95
Viewing questions 226 - 230 out of 468 questions


Post your Comments and Discuss CIMA CIMAPRA17-BA1-1 exam prep with other Community members:

AI Tutor AI Tutor 👋 I’m here to help!