CIMA Exam CIMAPRA17-BA1-1 Topic 4 Question 102 Discussion

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

Question #: 102
Topic #: 4

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 Ria at Oct 19, 2024, 03:34 PM

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14 days ago

I agree with Long, lowering interest rates can stimulate economic growth.

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24 days 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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4 days ago

But what about option C? Investing in education can also improve long term competitiveness.

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9 days ago

A) Lowering interest rates in order to boost the economy during a recession.

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11 days ago

I agree, lowering interest rates can help boost economic activity.

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28 days ago

I think the answer is A.

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