CIMAPRA17-BA1-1 Exam Questions - Real Practice Questions for Guaranteed Success

Question 1

Which of the following equations is correct regarding interest rates?

AReal interest rate = Nominal interest rate + Expected inflation rate

BReal interest rate = Nominal interest rate + Market risk premium

CNominal interest rate = Real interest rate + Expected inflation rate

DNominal interest rate = Real interest rate + Market risk premium

Correct : A

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AReal interest rate = Nominal interest rate + Expected inflation rate

BReal interest rate = Nominal interest rate + Market risk premium

CNominal interest rate = Real interest rate + Expected inflation rate

DNominal interest rate = Real interest rate + Market risk premium

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Question 2

An investor has bought a financial asset that pays a variable interest rate at the end of a three-year period At the same time, the invest forward rate agreement (FRA) on an agreed forward rate of 3% at the asset's maturity. What is the advantage of the FRA?

AIf the market interest rate at the asset's maturity is lower than 3%. the bank will pay the investor for the difference in rates

BIf the market interest rate at the asset's maturity is lower than 3%. the asset's maturity will be extended for another year

CIf the market interest rate at the asset's maturity is higher than 3%, the investor will have the option to drop the FRA upon payment

DIf the market interest rate at the asset's maturity is higher than 3%, the investor will be able to receive the higher market rate

Correct : A

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AIf the market interest rate at the asset's maturity is lower than 3%. the bank will pay the investor for the difference in rates

BIf the market interest rate at the asset's maturity is lower than 3%. the asset's maturity will be extended for another year

CIf the market interest rate at the asset's maturity is higher than 3%, the investor will have the option to drop the FRA upon payment

DIf the market interest rate at the asset's maturity is higher than 3%, the investor will be able to receive the higher market rate

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Question 3

Which of the following is correct in regards to organisations?

Organisations achieve more than individuals can achieve on their own because they enable people to

(1) share skills and knowledge

(2) maximise individuals' interests.

(3) specialise

(4) pool resources

A(1), (2)and(3)

B(2), (3) and (4)

C(1),(2)and(4)

D(1), (3) and (4)

Correct : D

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A(1), (2)and(3)

B(2), (3) and (4)

C(1),(2)and(4)

D(1), (3) and (4)

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Question 4

What is the mam objective or the PESTEL framework?

ATo identify the key factors in the business environment that are likely to affect a company's performance

BTo identify the key determinants of a company's profitability

CTo identify the key people who should be involved in a company's decision making process

DTo identify the key external stakeholders that are likely to be impacted by a company's activities.

Correct : A

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ATo identify the key factors in the business environment that are likely to affect a company's performance

BTo identify the key determinants of a company's profitability

CTo identify the key people who should be involved in a company's decision making process

DTo identify the key external stakeholders that are likely to be impacted by a company's activities.

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Question 5

A car dealer uses the following trend equation to estimate the number of cars sold each quarter

Y = 120 + 3t

Where y = number of cars sold each quarter and t = time period expressed in units

What is the forecasted number of cars sold in period 12. if there is an additive seasonal factor of 55?

A156

B101

C211

D139

Correct : C

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A156

B101

C211

D139

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Master CIMAPRA17-BA1-1 Exam with Reliable Practice Questions

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