CIPS A6 Exam Practice Test Instant Access

Question 1

Which of the following best describes 'exchange rates'?

AThe value of one country??s currency measured against that of another

BThe amount of business transacted between one country and another

CThe extent of barter transactions in a particular economy

DThe speed with which a company receives payment for goods or services it has sold.

Answer : B

Question 2

'Fiscal' poicy is government policy controlling which of the following? (2 marks)

AInflation

BUnemployment

CTaxation

DWages

Answer : C

Question 3

Which of the following best describes the term 'monetary policy'?

AThe government controlling economic activity by regulating the level of taxation

BThe government controlling economic activity by influencing public service provision

CThe government controlling economic activity by influencing the rate of interest

DThe government controlling economic activity by regulating monopolies.

Answer : B

Question 4

Which of the following describes people leaving one job and moving to another? (2 marks)

AStructural unemployment

BFrictional unemployment

CMigration unemployment

DCyclical unemployment

Answer : D

Question 5

Which of the following best describes 'balance of payments'?

AThe record of a country's monetary import and export transactions during a year

BThe record of exchange rate movements during a year

CThe record of all payments made by a government department during a year

DThe record of all revenue from taxes received by a government during a year.

Answer : B

Question 6

Which of the following promotional methods can be described as 'below the line'? (2 marks)

ARadio commercials

BSales leaflets and brochures

CInternet banners

DCinema advertising

Answer : B

Question 7

A price set in line with that charged by competitors.

APrivate Sector Business Results

BPrivate Sector Borrowing Requirement

CPublic Sector Borrowing Requirement

DPublic Sector Borrowing Review.

Answer : B

CIPS A6 Analyzing the Supply Market Exam Practice Test