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?

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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Veronica

12 days 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

14 days 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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Shaun

19 days 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

3 days ago

D) Reducing government expenditure in order to rem in a budget deficit

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Shanda

6 days ago

C) Increasing investment in education in order to improve the long term competitiveness of the economy

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Fernanda

7 days ago

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

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Mike

7 days ago

B) Introducing a tax on financial transactions in order to reduce the volume of speculative transactions

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Winfred

25 days ago

I'd go with A as well. Seems like the most direct way to reflate the economy.

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Krissy

9 days ago

B) Introducing a tax on financial transactions in order to reduce the volume of speculative transactions

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Loreta

15 days ago

I agree, that seems like the most effective way to stimulate the economy.

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Buck

18 days ago

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

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Ellsworth

1 months ago

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

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Kristeen

2 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

9 days ago

C) Increasing investment in education in order to improve the long term competitiveness of the economy

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Georgiann

12 days ago

That could also be effective in controlling excessive speculation.

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Carlton

18 days ago

B) Introducing a tax on financial transactions in order to reduce the volume of speculative transactions

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Irene

23 days ago

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

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Gerald

23 days ago

True, but in the context of reflationary monetary policy, lowering interest rates is more direct.

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Melinda

1 months ago

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

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Miesha

1 months ago

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

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Dean

1 months ago

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

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Long

2 months ago

I think the answer is A.

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