CIMA BA1 - Fundamentals of Business Economics

What is meant by the term 'mezzanine finance'?

A government may try to reduce a balance of payments deficit on current account by using either expenditure-reducing policies or expenditure-switching policies.

Which of the following is an expenditure-reducing policy?

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

The Global Banking Crisis showed that banks had failed in all of the following ways except which ONE?

Which of the following are known as automatic stabilizers because they tend to reduce the fluctuations in economic activity associated with the business cycle?

(i). Progressive income taxes

(ii). Unemployment benefits

(iii). Means-tested welfare benefits

(iv). Regressive taxation

Other things remaining equal, which one of the following is likely to increase as a result of the sale by the central bank of a large quantity of government bonds?

Every year a household allows its bank account to become overdrawn for 3 months to pay for its annual holiday. Which one of the following statements correctly describes this?

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:

All of the following are functions of a central bank except one. Which ONE is the exception?

Which of the following might justify a policy of privatization by the government?

(i). Privatization inevitably reduces monopoly power and exploitation in the economy

(ii). Privatization may be expected to increase the efficiency and competitiveness of the economy

(iii). Revenue raised from privatization can reduce the public sector borrowing requirement

(iv). Privatization helps to promote an enterprise culture amongst the population