Free CIMAPRA17-BA1-1 Exam Braindumps
BA1 - Fundamentals of Business Economics Questions 231–235 (page: 48)

Updated On: 9-Feb-2026

Which of the following are not classed as a non-bank financial intermediary?

  1. Life insurance companies
  2. Building societies
  3. Finance houses
  4. Investment exchanges

Answer(s): D



All of the following are functions of central banks except which one?

  1. Banker to the commercial banks
  2. Holder of the foreign exchange reserves
  3. Banker to the government
  4. Determination and conduct of fiscal policy

Answer(s): D



Lenders normally wish to offer their funds for the short term, but most borrowers prefer to borrow over the long term. Resolving this mismatch is known as:

  1. Risk reduction
  2. Aggregation
  3. Maturity transformation
  4. Pooling

Answer(s): C



The linking of net savers with net borrows is known as:

  1. financial intermediation
  2. the savings function
  3. money transfer
  4. credit creation

Answer(s): A



Which of the following describes the eventual increase in bank deposits that will result from the banking system receiving an additional £2bn of cash deposits whilst holding a cash ratio (or reserve ratio) of 7%?

  1. £0.28bn
  2. £2.15bn
  3. £14bn
  4. £28.57bn

Answer(s): D



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