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CIMAPRA17-BA1-1 Exam - Topic 1 Question 48 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam
Question #: 48
Topic #: 1
[All CIMAPRA17-BA1-1 Questions]

Commercial banks can create credit because:

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Suggested Answer: D

by Thurman at May 09, 2022, 05:51 PM

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Kimbery
4 months ago
I thought it was more about capital requirements, though.
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Crista
4 months ago
Central banks do act as lenders of last resort, that's a key point!
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Antonio
4 months ago
Wait, are we sure about that? Seems a bit off.
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Tina
4 months ago
Totally agree, it's all about how much cash people want at once!
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Kristin
5 months ago
Banks can create credit because of customer deposit behavior.
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Hassie
5 months ago
Okay, let me think this through. I think the key is to get the profile set up properly as a business account first, so I'm going to go with switching to a business profile.
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Aretha
5 months ago
I'm a bit confused on the difference between the public and private keys here. Do we need both or just one of them? I'll have to review my notes to make sure I understand this properly.
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Cassi
5 months ago
I remember discussing how finance leases can keep liabilities off the balance sheet, which could help with gearing ratios. Is that what they mean by "off-balance sheet"?
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Aleta
5 months ago
This one seems pretty straightforward. The production manager's salary would be an indirect labor cost, so I'm going with option C.
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