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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Alishia

1 months ago

Haha, I'd have to disagree with Melynda there. Imports decreasing demand for the domestic currency? That's like saying the sky is green!

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Mona

2 days ago

User 2: B) A rise in imports.

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Mattie

10 days ago

User 1: A) An increase in exports.

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Melynda

2 months 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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Francesco

17 days ago

C) More domestic companies invest abroad.

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Francesco

28 days ago

A) An increase in exports.

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Latrice

2 months 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

2 months ago

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

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Deja

2 months 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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