CIMA Exam CIMAPRA17-BA1-1 Topic 2 Question 108 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam

Question #: 108
Topic #: 2

[All CIMAPRA17-BA1-1 Questions]

Which of the following is an example of reflationary monetary policy?

ALowering interest rates in order to boost the economy during a recession.

BIntroducing a tax on financial transactions in order to reduce the volume of speculative transactions

CIncreasing investment in education in order to improve the long term competitiveness of the economy

DReducing government expenditure in order to rem in a budget deficit

Show Suggested Answer

Suggested Answer: A

by Crissy at Mar 09, 2025, 01:25 PM

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2 days ago

I agree with Ling, lowering interest rates can stimulate spending.

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3 days ago

I think the answer is A) Lowering interest rates.

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10 days ago

A) Lowering interest rates seems like the obvious answer here. That's a classic reflationary policy to stimulate the economy.

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