CIPS A6 Exam Questions Instant Access - No Installation Required

Question 1

Which of the following is the most likely consequence of government decreasing interest rates? (2 marks)

APeople spend more

BPeople spend less

CThe economy slows down

DThe cost of borrowing goes up

Answer : A

Question 2

Which of the following best describes 'fiscal policy'?

AThe control of inflation

BThe control of unemployment

CThe control of taxation

DThe control of wages.

Answer : D

Question 3

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 4

Which of the following headings would appear in the current account of a country's alance of payments? (2 marks)

ATransactions in goods and services

BTransactions in external assets and liabilities

CTransactions in large sums of money

DTransactions in stocks and shares

Answer : A

Question 5

Which of the following best defines the term 'equilibrium price'? (2 marks)

AThe price at which the level of demand in a market exceeds the level of supply

BThe price at which all commodities are of equal value in a market

CThe price at which the level of supply in a market exceeds the level of demand

DThe price at which the level of supply in a market matches the level of demand.

Answer : D

Question 6

Which of the following best describes the term 'inflation'?

AToo little money chasing too many goods

BToo much money chasing too few goods

CToo little money chasing too few goods

DToo much money chasing too many goods.

Answer : A

Question 7

Which of the following best describes the pricing policy known as 'skimming'?

AA low price set to gain a large share of the market or to gain acceptance for a new product

BA high price aimed at a quick recovery of costs where a product is new and is an innovation

CCharging different prices to different customers based on order size or type of customer

DA temporary price reduction aimed at increasing sales in the short-term and increasing longterm market-share.

Answer : C

CIPS Analyzing the Supply Market A6 Exam Questions