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CIMAPRA17-BA1-1 Exam - Topic 4 Question 117 Discussion

Which of the following is an example of reflationary monetary policy?
A) Lowering interest rates in order to boost the economy during a recession.
B) Introducing a tax on financial transactions in order to reduce the volume of speculative transactions
C) Increasing investment in education in order to improve the long term competitiveness of the economy
D) Reducing government expenditure in order to rem in a budget deficit

CIMAPRA17-BA1-1 Exam - Topic 4 Question 117 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam
Question #: 117
Topic #: 4
[All CIMAPRA17-BA1-1 Questions]

Which of the following is an example of reflationary monetary policy?

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Suggested Answer: A

by Lizbeth at Oct 27, 2025, 04:27 PM

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Huey
5 months ago
True, but C isn't monetary policy. A directly affects money supply.
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Caprice
5 months ago
C) sounds good for the long term, but not reflationary, right?
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Lauran
5 months ago
B) and D) are not reflationary at all.
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Johnson
6 months ago
Wait, can lowering interest rates really fix a recession?
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Katy
6 months ago
Totally agree, lowering interest rates helps stimulate spending.
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Lang
6 months ago
A) all the way. Lowering rates is the way to go when you need some reflation.
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Penney
6 months ago
I'd go with A. Gotta get that economy moving again!
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Raylene
6 months ago
Definitely A. Reducing interest rates is a classic reflationary policy.
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Louis
6 months ago
A) Lowering interest rates to boost the economy during a recession. That's the one!
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Florinda
7 months ago
I feel like I might be mixing up terms, but isn't reflationary policy supposed to increase spending? So A sounds correct, but I’m not 100% sure.
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Gerald
7 months ago
This question reminds me of a practice one we did on economic policies. I think A is definitely the best answer here.
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Arminda
7 months ago
I'm not entirely sure, but I remember something about tax policies being more fiscal than monetary.
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Heidy
7 months ago
But what about C? Investing in education is also important for growth.
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Hermila
7 months ago
A) is definitely reflationary!
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Olive
7 months ago
I think A is the right answer. Lowering interest rates helps stimulate spending.
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Pete
8 months ago
Haha, D) Reducing government spending to reduce a deficit? That's like trying to lose weight by cutting off your own leg.
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Lisha
8 months ago
Agreed! A makes sense for reflation during a recession.
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Kerry
8 months ago
I think reflationary monetary policy is about stimulating the economy, so lowering interest rates seems like the right choice.
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Marleen
8 months ago
Hmm, I'm not 100% confident, but I'm leaning towards A. Lowering rates to boost the economy during a recession seems like a classic reflationary move to me.
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Pa
9 months ago
I remember learning about this in class. Reflationary policy is all about expanding the money supply to stimulate growth. So I think A is the best answer here.
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Gilberto
9 months ago
Wait, I'm a bit confused. Isn't reflationary policy more about increasing the money supply? I'm not sure if lowering rates counts.
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Shawnee
9 months ago
Okay, I'm pretty sure reflationary policy is about boosting the economy, so I'm going to go with A.
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Beckie
9 months ago
Hmm, this seems like a tricky one. I'll need to think carefully about the definition of reflationary monetary policy.
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Micheal
4 months ago
Exactly, A is the clear choice here.
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Loise
4 months ago
True, but that's not monetary policy, is it?
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Viola
4 months ago
But what about C? Investing in education could help long-term.
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Rozella
4 months ago
Yeah, A sounds right for reflation.
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Micheal
4 months ago
I think it's A. Lowering interest rates makes sense.
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