Online Access Free BA1 Exam Questions

Identify from the list below the financial instrument that is not a method of government borrowing:

• A.Contributions to state-provided pensions
• B.Government bonds
• C.Taxation
• D.Cash (i.e. notes and coins)

A railway franchise in north-eastern Messu Potami has recently changed hands, and is now being operated by the company IstClass. However, IstClass already operate the railway franchise in northwestern Messu Potami.
Which of the following courses of action would be most appropriate for the government of Messu Potami to take?
Select ALL that apply.

• A.Impose a uniform sales tax on all railway tickets which would equalise prices across the country
• B.Allow the regional monopoly to exist, increasing fare prices for passengers on trains in both north-western and north-eastern Messu Potami
• C.Establish a regulatory body to prevent a regional monopoly
• D.Immediately nationalise the railway network, ending all private franchises and thus any regional monopolies
• E.Rerun the franchise bidding process if it found that IstClass are imposing additional price rises due to the regional monopoly

Which ONE of the following would appear as a debit item on a country's balance of payments current account?

• A.A flow of company profits to the parent company based in another country
• B.Expenditure in the country by an overseas visitor
• C.Overseas investment by a domestic multinational company
• D.Payment by an overseas company for services provided in the country

Which ONE of the following best explains the statement 'In not for profit organizations money is a constraint and not a goal'?

• A.Money be ignored because reaching the goals of the organization is all that matters
• B.There is a trade off between financial and non-financial goals
• C.There is no need for the organization to be efficient
• D.Money limits how far the organization can achieve its goals

Which of the following provide possible explanations for the existence of a structure of interest rates?
(i). Borrowers having different risk profiles
(ii). Lenders wishing to lend for different time profiles
(iii). The market for loanable funds being perfectly competitive
(iv). The existence of margins between borrowing and lending rates

• A.(i), (ii) and (iii) only
• B.(i), (ii) and (iv) only
• C.(i) and (iv) only
• D.(ii) and (iii) only