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CIMA BA1 Exam With Confidence Using Practice Dumps

Exam Code:
BA1
Exam Name:
Fundamentals of Business Economics
Certification:
Vendor:
Questions:
468
Last Updated:
Jul 15, 2026
Exam Status:
Stable
CIMA BA1

BA1: CIMA Certificate Exam 2025 Study Guide Pdf and Test Engine

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Fundamentals of Business Economics Questions and Answers

Question 1

All of the following would tend to lead to an industry being dominated by a small number of firms except one. Which ONE is the exception?

Options:

A.

Significant economies of scale in production

B.

The existence of entry barriers to the industry

C.

High initial capital costs in production

D.

Extensive consumer knowledge of products and prices

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Question 2

A financial intermediary takes the small deposits of millions of savers and uses them to buy an issue of government (treasury) bills and bonds.

Identify from the list below the principle this illustrates:

Options:

A.

Maturity transformation

B.

Aggregation

C.

Risk transformation

D.

Money transmission

Question 3

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?

Options:

A.

Devaluation of the exchange rate

B.

Imposing tariffs and quotas on imports

C.

Export subsidies

D.

Higher income tax rates