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Exam CIMAPRA17-BA1-1 Topic 4 Question 102 Discussion
CIMA Exam CIMAPRA17-BA1-1 Topic 4 Question 102 Discussion
Actual exam question for CIMA's CIMAPRA17-BA1-1 exam
Question #: 102
Topic #: 4
[All CIMAPRA17-BA1-1 Questions]
Which of the following is an example of reflationary monetary policy?
A
Lowering interest rates in order to boost the economy during a recession.
B
Introducing a tax on financial transactions in order to reduce the volume of speculative transactions
C
Increasing investment in education in order to improve the long term competitiveness of the economy
D
Reducing government expenditure in order to rem in a budget deficit
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Suggested Answer:
A
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Oct 19, 2024, 03:34 PM
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Veronica
2 months ago
I'd say A is the best answer, but I'm always a little suspicious of the 'obvious' choice. Guess I'll go with my gut on this one.
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Patrick
2 months ago
Haha, option D is a bit of a joke, isn't it? Reducing government spending during a recession? That'll really get the economy going!
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Tomas
23 days ago
C) Increasing investment in education in order to improve the long term competitiveness of the economy
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Candida
25 days ago
B) Introducing a tax on financial transactions in order to reduce the volume of speculative transactions
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Hannah
30 days ago
A) Lowering interest rates in order to boost the economy during a recession.
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Shaun
2 months ago
I'm not sure, but I think C might be the correct answer. Investing in education can have long-term reflationary effects.
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Kirk
1 months ago
D) Reducing government expenditure in order to rem in a budget deficit
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Shanda
2 months ago
C) Increasing investment in education in order to improve the long term competitiveness of the economy
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Fernanda
2 months ago
A) Lowering interest rates in order to boost the economy during a recession.
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Mike
2 months ago
B) Introducing a tax on financial transactions in order to reduce the volume of speculative transactions
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Winfred
2 months ago
I'd go with A as well. Seems like the most direct way to reflate the economy.
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Hayley
27 days ago
That sounds more like a contractionary policy rather than reflationary.
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Oliva
28 days ago
D) Reducing government expenditure in order to remain a budget deficit
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Eva
30 days ago
Education is important for long-term growth, but it may not be reflationary in the short term.
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Beatriz
1 months ago
C) Increasing investment in education in order to improve the long term competitiveness of the economy
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Emerson
1 months ago
That might have a different impact on the economy compared to lowering interest rates.
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Krissy
2 months ago
B) Introducing a tax on financial transactions in order to reduce the volume of speculative transactions
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Loreta
2 months ago
I agree, that seems like the most effective way to stimulate the economy.
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Buck
2 months ago
A) Lowering interest rates in order to boost the economy during a recession.
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Ellsworth
3 months ago
I agree with Long, lowering interest rates can stimulate economic growth.
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Kristeen
3 months ago
Option A seems like the obvious choice here. Lowering interest rates is a classic way to stimulate the economy during a downturn.
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Belen
2 months ago
C) Increasing investment in education in order to improve the long term competitiveness of the economy
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Georgiann
2 months ago
That could also be effective in controlling excessive speculation.
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Carlton
2 months ago
B) Introducing a tax on financial transactions in order to reduce the volume of speculative transactions
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Irene
2 months ago
I agree, lowering interest rates can help stimulate economic activity.
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Gerald
2 months ago
True, but in the context of reflationary monetary policy, lowering interest rates is more direct.
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Melinda
2 months ago
But what about option C? Investing in education can also improve long term competitiveness.
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Miesha
3 months ago
A) Lowering interest rates in order to boost the economy during a recession.
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Dean
3 months ago
I agree, lowering interest rates can help boost economic activity.
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Long
3 months ago
I think the answer is A.
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Veronica
2 months agoPatrick
2 months agoTomas
23 days agoCandida
25 days agoHannah
30 days agoShaun
2 months agoKirk
1 months agoShanda
2 months agoFernanda
2 months agoMike
2 months agoWinfred
2 months agoHayley
27 days agoOliva
28 days agoEva
30 days agoBeatriz
1 months agoEmerson
1 months agoKrissy
2 months agoLoreta
2 months agoBuck
2 months agoEllsworth
3 months agoKristeen
3 months agoBelen
2 months agoGeorgiann
2 months agoCarlton
2 months agoIrene
2 months agoGerald
2 months agoMelinda
2 months agoMiesha
3 months agoDean
3 months agoLong
3 months ago