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CIMA BA1 Exam With Confidence Using Practice Dumps

Exam Code:
BA1
Exam Name:
Fundamentals of Business Economics
Certification:
CIMA Certificate
Vendor:
CIMA
Questions:
468
Last Updated:
Nov 8, 2025
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

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Question 1

'The £ has risen against other currencies since August, defying forecasters who thought that the UK's widening trade deficit must cause the £'s exchange rate to fall.'

From the above information, it can be concluded that, since August

Options:

A.

UK exports have become less price competitive

B.

The UK inflation rate has increased

C.

UK interest rates must have increased

D.

The strengthening pound has improved the UK balance of payments on current account

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Question 2

Inflation is undesirable for all of the following reasons except which one?

Options:

A.

Inflation decreases the international competitiveness of the business sector.

B.

Inflation distorts the price system and the process of resource allocation.

C.

Inflation shifts wealth from debtors to creditors in an arbitrary fashion.

D.

Inflation makes business forecasting and planning more difficult.

Question 3

Market price refers to:

Options:

A.

the price that is determined by demand and supply.

B.

the price that includes tax

C.

the value that is adjusted for inflation.

D.

the price that maximise profits.

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