CIMA Exam CIMAPRA17-BA1-1 Topic 1 Question 93 Discussion

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

Question #: 93
Topic #: 1

[All CIMAPRA17-BA1-1 Questions]

Which of the following will result in an increase in demand for domestic currency?

AAn increase in exports.

BA rise in imports.

CMore domestic companies invest abroad.

DOutward financial flows.

Show Suggested Answer

Suggested Answer: B

by Karina at Jul 18, 2024, 10:09 PM

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Melynda

3 days ago

B) A rise in imports? Really? Wouldn't that actually decrease demand for the domestic currency as more of it is used to purchase foreign goods?

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Latrice

6 days ago

I'm leaning towards D) Outward financial flows. When money flows out of the country, it creates more demand for the domestic currency to facilitate those transactions.

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Barney

9 days ago

But what about C) More domestic companies invest abroad? Wouldn't that decrease demand for domestic currency?

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Deja

10 days ago

A) An increase in exports seems like the right answer to me. That would boost demand for the domestic currency as foreigners need to purchase it to pay for the exports.

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Craig

12 days ago

I agree with Tricia, because when exports increase, foreign buyers need to buy domestic currency to pay for the goods.

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Tricia

16 days ago

I think A) An increase in exports will increase demand for domestic currency.

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