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Lenders normally wish to offer their funds for the short term, but most borrowers prefer to borrow over the long term. Resolving this mismatch is known as:
All other things remaining equal, which of the following would encourage a speculative short-term capital flow into a country's currency?
The Lingford Miracle Association is a registered charity. It is closely associated with Lingford General Hospital. The charity has a number of goals.
Which of the following could potentially be goals set out by the Lingford Miracle Association given the information about the organisation that has been outlined?
The share price of Quench Drinks has been steadily falling for several years despite steady sales and a slight market share increase over the last 5 years. They have been criticised for being full of sugar and not
capitalising on the health food trend.
Quench are starting to face pressure from their shareholders to push the share price back up.
Which of the following would be most likely to improve Quench's standing in the soft drinks market?
Select ALL that apply.
jerry has just been appointed the director of Foodgo Pic, an international supermarket chain. He outlines his main priorities to his staff, which are as follows:
1: To increase sales from £23bn per year to £30bn per year within the next five years.
2: To increase the number of items stocked in Foodgo stores to attract more customers.
3: To prioritise sales figures over profits, which have been stagnant for five years.
Which of the following best describes why shareholders may be unhappy with jerry's approach to the business?
The World Bank is an international financial institution, controlled by governments, that lends money to developing nations to allow them to afford to build infrastructure and industries that will enable them to become richer countries over the following decades.
Identify the function being performed by the World Bank.
Which ONE of the following would be expected to reduce the net present value of a proposed investment project?
A rise in
Why was the Global Banking Crisis of 2007 followed by a credit crunch of low lending?
Which of the following are not classed as a non-bank financial intermediary?
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
Company X is a wholesaler. It sells the majority of its products in bulk to a small number of restaurants and cafes in the local area.
Which of the following will Company X experience in light of this?
Select ALL that apply.
What is described by the following definition 'the total accumulated amount the state owes to lenders in its own country and internationally'?
In the short run, which of the following would result from a depreciation of the country's exchange rate?
(i). Increased competitiveness of the country's exports
(ii). Increased quality competitiveness of the county's imports
(iii). A worsening of the country's terms of trade
(iv). Increased energy and raw material costs for the country's manufacturing firms
Which TWO of the following policy actions might be available to a government that wishes to reduce a deficit in the balance of payments?
Which of the following are the likely consequences, in the domestic of a county, of an increase in interest rates?
1. A rise in demand for capital goods
2. A fall in demand for consumer good.
3. A fall in demand for housing
4. A rise in the exchange rate.
All of the following are true under a system of floating (flexible) exchange rates except which one?
Which TWO of the following are positive impacts for a national economy which hosts a multinational company's (MNC) production facilities within their country"?
Company A is looking to protect itself from transaction exchange rate risk.
Company A does not require 100% of the value of transaction to be protected, and it would like the method it uses to have the following characteristics
• An agreed exchange rate for a specified period where both parties have a legal obligation
• A separation of the contract guaranteeing the pnce of the currency from the underlying transaction.
Which of the following would best provide the type of protection from exchange rate risk company A wants?
A car dealer uses the following trend equation to estimate the number of cars sold each quarter
Y = 120 + 3t
Where y = number of cars sold each quarter and t = time period expressed in units
What is the forecasted number of cars sold in period 12. if there is an additive seasonal factor of 55?
If a central bank wished to increase the supply of money and credit in the economy it would:
The following table provides the frequency distribution and cumulative frequencies of the cost of monthly rent for 120 apartments. What is the percentage of apartments whose monthly rent is less than $510?
In recent years, consumer groups have become more vocal in calling for the boycott of producers whose suppliers do not comply with international regulations on workplace safety and child labour A fashion company that outsources its production to low labour cost countries should include this phenomenon in which part of their PESTEL framework?
Which of the following organisational arrangements is an example of a multinational corporation (MNC)?
Based on a trade balance between Country A and Country B over a ten year period, the underlying trend of the trade balance is represent equation
-114.027 -1.47x
where x is the time period expressed in years.
Assuming an additive forecasting model, with a seasonal factor of 82 6, then the forecast for year 2016, in whole units is:
Which of the following businesses is least likely to benefit from an appreciation of Country A's currency against Country B's currency?
Since its release. Bob Aker's 'Cooking to Go' has sold the following number of copies each Q1:
2X13:200
2X14:430
2X15:530
2X16:450
Using these figures and the equation, y (trend) = 500 + 20x, which of the following is the mean seasonal average of sales of Bob Aker's 'Cooking to Go' for Q1 over the last four years?
Calculate all the final and answer and all intermediate workings to 2 dp.
0.77
0.85
1.02
4.5
0.63
A business has a contractual requirement to pay a sum of$6m in a foreign currency in 12 months time. It takes out a forward exchange contract from this sum.
The Competition and Markets Authority is a regulatory body in the UK. In 2017, the CMA found the proposed merger of Heineken and Punch Pubs in breach of its competition laws. Heineken and Punch Pubs have agreed
to divest in pubs in areas where they are the two dominant pub companies.
Which of the following are ways in which consumers might directly benefit from this decision?
Select ALL that apply.
Golden Crisp Cereals plans to build its new factory on the outskirts of Bimbleton, an affluent medium-sized town where its current headquarters is based. The area where they are planning to build the factory was
formerly a country park.
Of the following, which stakeholder would be most likely to protest against the construction of the new Golden Crisp Cereals factory?
The British Government has decided to invest £10m in the Department of Education to build new schools in the most deprived areas of the country.
In what way does this benefit the British economy?
Which THREE of the following businesses are more likely to fare belter during a recession?
If a country joined an economic union (for example, the European Union) its business sector could benefit from all of the following except which one?
Some not-for-profit organizations (NPOs) are required to show they are effective. Which one of the following most closely defines effective?
A firm is considering a large capital investment project. It is considering delaying it in case the government introduces special tax breaks for investment that will reduce the tax the firm pays. In which stage of the trade cycle is the government least likely to reduce taxation?
Which ONE of the following is NOT required in calculating the EPS of ABC plc?
All of the following would lead to fall in the circular flow of national income except which one ?
Which ONE of the following would appear as a debit item on a country's balance of payments current account?
If a government adopted a fiscal policy of cutting its budget deficit, the aggregate demand and supply model shows that the result would be:
Which of the following is not a consequence of a country suffering a high rate of inflation?
A 'supply-side' economist would recommend that in the long term, a country's unemployment problem should be tackled by
Oxfam is a charity established to provide aid to the poor. Which ONE of the following statements about Oxfam is FALSE?
The business sector will be affected by a contraction in the money supply because
All of the following are early indicators of a recovery from a recession except which one?
All of the following are elements of a supply side policy except which one?
The demand for salt is generally regarded as price inelastic. Which ONE of the following factors would not contribute to making demand for salt price inelastic?
All of the following will tend to increase the number of firms in any one industry except which one?
If a firm wishes to maximize market share without incurring a loss, it should set its price where
All of the following would tend to make the demand for a good highly price elastic except one. Which ONE is the exception?
In a market economy the market mechanism can achieve all the following except one. Which is the exception?
Which of the following can be efficiently allocated between competing uses by the price mechanism?
A business can always raise its profits or reduce its losses by increasing output
Which ONE of the following statements best defines the principal-agent problem in a company?
Which ONE of the following would tend to make the demand for a product price inelastic?
TESTED 20 Apr 2024