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BA1 Exam Dumps : Fundamentals of Business Economics

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Fundamentals of Business Economics Questions and Answers

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Question 1

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.

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Question 2

What is described by the following definition 'the total accumulated amount the state owes to lenders in its own country and internationally'?

Options:

A.

The national debt

B.

The fiscal deficit

C.

The balance of payments deficit

D.

The structural deficit

Question 3

Which of the following describes a 'spot rate' in foreign currency dealing?

Options:

A.

It is a short term rate that may change in the immediate future

B.

It is the price for a currency that is to be delivered immediately

C.

It is the exchange rate minus any commissions or transactions charges

D.

It is the exchange rate minus the inflation rate

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