CIMA CIMA-BA1
CIMA BA1 Fundamentals of Business Economics Flashcards
What are the missing labels on this diagram (Mendelow’s Matrix)?
GDP = | Household spending | + | Capital investment spending | + | ????? | + | Exports of goods and services | – | Imports of goods and services |
What term is missing from the above formula for GDP?
What arrow label (on the left) is missing from the above diagram which shows the circular flow of income?
In the following diagram, what is happening when the aggregate supply line becomes vertical?
What are the deflationary and inflationary gaps?
What events can cause a rightwards shift in the aggregate demand curve?
What are the five types or causes of inflation?
What are the Laspayre and Paasch indexes?
In the following diagram, what label should be on the middle horizontal arrow?
What are the four ways in which governments can obtain more money?
What are regressive, progressive and proportional taxes?
What is an ‘ad valorum’ tax?
What are the three elements of fiscal policy?
What is the ‘multiplier’?
With regard to the balance of payments what are the capital and current accounts?
What is absolute advantage in relation to international trade?
What are four reasons why international trade occurs?
What is comparative advantage in relation to international trade?
What are four potential drawbacks arising from international trade?
What are four possible protectionist methods?
Does high inflation in a country weaken or strengthen a currency with respect to the currency of a low-inflation country?
What is meant by the term ‘globalisation’?
A country is trading with the USA. If its currency strengthens against the US$ what effect does this have on the price of its exports in the USA and the cost of its imports from the USA?
What is ‘off-shoring’?
Are the following statements true or false? Not-for-profit organisations implies they are state-owned
What is the purpose of trade agreements?
Is the following statement true or false? If a company has limited liability this means that the company is protected from its creditors.
What is the formula for return on equity?
What is PESTEL?
What is the formula for return on capital employed?
What is an ‘organisation’?
What are the three classes of stakeholder?
Is the following statement true or false? When complying with the UK Corporate Governance Code a company
When complying with the UK Corporate Governance Code a company can have twice as many executive directors as non-executive directors.
When complying with the UK Corporate Governance, what are the three board sub-committees consisting of (exclusively or principally) non-executive directors?
In the diagram below, which of Product A or Product B has the higher elasticity of demand?
What is the formula for the price elasticity of demand?
In what direction would the demand curve for a product move if the price of a substitute product increased?
It the purchase tax on raw material is increased, will the supply curve move to the right or to the left?
A price elasticity of demand of <1 means what?
What is a natural monopoly?
What are public goods?
What is an externality?
What are four possible adverse consequences if a government sets minimum prices for a product?
If a government were to legislate for maximum prices for a commodity how can demand then be matched to supply?
What is the ACCURATE mnemonic for good information?
What are the two types of common chart used to display frequency distributions?
How is the median read from a cumulative frequency curve?
What are the four Vs of big data?
What is meant by the term ‘longitudinal study’?
What is meant by the term ‘cross-sectional’ study?
Linear regression will give constants which fit a line of the type: y = ax + b.
Which of y or x should be the independent variable?
What do the values of 1, 0 and -1 mean when talking about a coefficient of correlation?
What is the coefficient of determination, how is it obtained and how is it interpreted?
“If a coefficient of correlation is very high then this is strong evidence that movements in one variable cause the other.”
Is that statement true or false?
What are four purposes of money?
When is Spearman’s rank correlation coefficient of particular use?
What are the four elements of a time series and which two are determined in moving average calculations?
What are five functions of banks?
What is a debenture?
What is a convertible?
What are financial instruments?
If a company is doing well and making good profits, which one of the following will increase in value?
How is the value of an irredeemable fixed-interest bond calculated when market interest rates change?
As borrowing terms increase will the interest rate required usually rise or fall?
How is the present value of a single future amount calculated?
How is the credit multiplier calculated, and what does it show?
How is the present value of an annuity that starts LATER than year 1 calculated?
State the compound interest formula.
How is the present value of a PERPETUITY calculated, including one that is growing or delayed?
How is the present value of a level annuity calculated?
What is the definition of the internal rate of return?
State the interpolation formula for estimating the IRR.
What are the three types of risk that can arise from currency movements in international trade or investment?
What is a forward exchange contract?
If an option is allowed to lapse then the option premium is repaid.
What is a currency option?
What is a forward rate agreement (FRA)?
What are interest rate options?
What are interest rate futures?
Card 1 of 80. Question side.