CIMAPRA17-BA1-1 Exam - Topic 1 Question 67 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam

Question #: 67
Topic #: 1

[All CIMAPRA17-BA1-1 Questions]

Which of the following describes the effect an interest rate rise may have on a company?

APrices will have to increase due to increased inflationary pressures

BSales will increase as consumers have stable incomes in the short term.

CThe cost of financing projects through loans will increase

DThe cost of holding stock will reduce

Show Suggested Answer

Suggested Answer: C

by Alease at Mar 25, 2023, 09:34 AM

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Nu

7 months ago

D seems unlikely, how does stock holding get cheaper?

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Ronnie

7 months ago

Totally agree with C, financing gets pricier for sure.

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Shanice

7 months ago

Wait, how can sales increase if rates go up? Sounds off.

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Johnna

7 months ago

A is spot on, inflation will push prices up!

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Shenika

8 months ago

Definitely C, higher interest means more loan costs.

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Yvonne

8 months ago

I don't think D is correct; higher interest rates typically increase costs, not reduce them. It seems counterintuitive.

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Joni

8 months ago

I practiced a similar question, and I feel like option A could be relevant too, especially if inflation rises alongside interest rates.

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Laticia

8 months ago

I'm not entirely sure, but I remember something about interest rates affecting consumer spending. Maybe option B could be misleading?

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Gaston

8 months ago

I think option C makes the most sense since higher interest rates usually mean higher borrowing costs for companies.

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Jaclyn

8 months ago

From what I've learned, culture change is an ongoing process that happens alongside the SAFe transformation. It's not a one-time event before or after the implementation.

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Judy

8 months ago

Based on my understanding, the Cisco UCS 6332-16UP model is the one with multiple 100 Gbps ports, so I'll select option D.

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