CIMA Exam CIMAPRO19-P02-1 Topic 3 Question 90 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam

Question #: 90
Topic #: 3

[All CIMAPRO19-P02-1 Questions]

Which TWO of the following expressions are correct?

A1 + money rate = (1 + real rate) x (1 + inflation rate)

B1 + real rate = (1 + money rate) / (1 + inflation rate)

C1 + real rate = (1 + inflation rate) / (1 + money rate)

D1 + money rate = (1 + inflation rate) / (1 + real rate)

E1 + inflation rate = (1 + money rate) x (1 + real rate)

Show Suggested Answer

Suggested Answer: A, B

by Chery at Jun 23, 2024, 10:02 AM

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Serita

5 months ago

This question is making my head spin. Maybe I should have studied more finance and less cat memes.

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Nan

3 months ago

Don't worry, finance can be tricky. You'll get the hang of it!

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Nidia

3 months ago

C) 1 + real rate = (1 + inflation rate) / (1 + money rate)

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Stevie

4 months ago

A) 1 + money rate = (1 + real rate) x (1 + inflation rate)

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Cyril

4 months ago

Don't worry, finance can be tricky. Just keep practicing!

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Elmer

4 months ago

C) 1 + real rate = (1 + inflation rate) / (1 + money rate)

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Tori

4 months ago

A) 1 + money rate = (1 + real rate) x (1 + inflation rate)

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Dahlia

5 months ago

Hold up, are we sure this isn't a trick question? I'm going with B and D just to be safe.

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Wei

5 months ago

E, obviously! Inflation is the root of all evil, so it must be the key to this question.

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Zita

4 months ago

You're both wrong, it's actually D) 1 + money rate = (1 + inflation rate) / (1 + real rate)

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Lisha

4 months ago

No, I believe it's C) 1 + real rate = (1 + inflation rate) / (1 + money rate)

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Mira

4 months ago

I think it's actually A) 1 + money rate = (1 + real rate) x (1 + inflation rate)

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Joesph

4 months ago

E) 1 + inflation rate = (1 + money rate) x (1 + real rate)

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Natalie

5 months ago

I'm not sure, but I think D is definitely incorrect.

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Dexter

5 months ago

I disagree, I believe B and E are the correct expressions.

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Trina

5 months ago

I think A and C are correct.

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Emerson

6 months ago

I'm pretty sure C and D are the right ones. Who needs real rates anyway?

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Dominic

5 months ago

Real rates are important for accurate calculations.

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Dorian

5 months ago

I think C is correct, but not sure about D.

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Charlesetta

6 months ago

A and B are correct. It's basic finance equations, nothing too fancy.

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Annita

5 months ago

Yeah, A and B are the right ones. It's important to understand these relationships in finance.

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Freeman

5 months ago

I think it's A and B too. The formulas make sense when you break them down.

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Tasia

6 months ago

A and B are correct. It's basic finance equations, nothing too fancy.

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