QUESTION: 13

Company A owns a factory in a foreign country. Which of the following types of exchange rate risk is company A most likely to experience in relation to the value of the factory?

Economic risk
Energy risk
Transaction risk
Translation risk

Answer(s): D

Reference:

https://webcache.googleusercontent.com/search?q=cache:rUr_SO58tB8J:https://www.acowtancy.com/textbook/cima-ba1/d3-impact-of-changes-in-interest-and-exchange-rates-on-controllingand-measuring-business-performance/impact-of-exchange-rate-changes/notes+&cd=1&hl=en&ct=clnk&gl=pk&client=opera

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QUESTION: 14

FILL BLANK
An estimation regression is developed to test the linear relationship between the size of student population at a university and monthly sales of a nearby bookshop. The correlation coefficient is equal to 0.9.

Calculate the coefficient of determination to two decimal places:

0.31

Answer(s): A

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QUESTION: 15

A manufacturing company is considering a new investment project.
Which TWO of the following would reduce the net present value of the investment to the business? (Choose two.)

A rise in the scrap value of the project at the end of its life.
A reduction in the expected level of future sales.
A rise in interest rates.
A fall in the initial capital cost of the project.
An expected fall in the future price of components used by the business.

Answer(s): C,E

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QUESTION: 16

Commercial banks can create credit because:

central banks are 'lenders of last resort' and provide commercial banks with cash when needed.
banks are required to hold enough capital to meet bad debts.
banks hold accounts at the central bank which are available as cash.
customers only want some of their deposits in the form of cash in any given period.

Answer(s): C

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Free CIMAPRO17-BA1-X1-ENG Exam Braindumps (page: 4)

QUESTION: 13

Reference:

QUESTION: 14

QUESTION: 15

QUESTION: 16