CIPS A6 Exam Questions Instant Access - No Installation Required

Question 1

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 2

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 3

Which of the following relationships best describes a small change in demand as a result of a large change in price? (2 marks)

AInelastic

BExplicit

CImplicit

DElastic

Answer : A

Question 4

Which of the following best describes the term 'structural unemployment'?

AUnemployment created as demand for workers varies at different times of the year

BUnemployment created by a significant change in the nature of industries

CUnemployment created as workers leave one job and move to another

DUnemployment created as a result of business failures in the market place.

Answer : C

Question 5

Which of the following best describes a 'factor market'?

AA market where money is provided to help organizations to grow

BA market where goods and services are sold to customers

CA market where labour, raw materials and capital are bought and sold

DA market where advice and consultancy services are bought and sold.

Answer : D

Question 6

Which of the following best describes the effect of inflation.

AToo many people chasing too many goods

BToo few people chasing too few goods

CToo many people chasing too few goods

DToo few people chasing too many goods.

Answer : A

Question 7

Which of the following best describes the concept of exchange rates?

AThe amount of business transacted between one country and another during a year

BThe speed with which a company receives payment for goods or services sold

CThe ability of a country to take advantage of currency differences

DThe value of one country's currency measured against that of another.

Answer : D

CIPS Analyzing the Supply Market A6 Exam Questions