CIMA Certificate Changed BA1 Questions

Fundamentals of Business Economics Questions and Answers

Question 57

Select the best definition of the corporate governance of a company from the list below.

The structure and functions of the Board of a firm

The systems by which companies are directed and controlled

The composition and duties of the management of a company

The financial and non-financial performance of a company

Question 58

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:

Maturity transformation

Aggregation

Risk transformation

Money transmission

Question 59

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

The national debt

The fiscal deficit

The balance of payments deficit

The structural deficit

Question 60

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

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

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

It is the exchange rate minus any commissions or transactions charges

It is the exchange rate minus the inflation rate