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QUESTION NO: 1
The managing director of Polly's, a department store, has found that ten of its stores located in the south east of England have seen a significant fall in profit margin.
Which of the following is most likely to be the cause of this?
A. An increase in footfall at these stores
B. An increase in rent for the premises in which the store is located
C. A decrease in rent for the premises in which the store is located
D. A decrease in sales at these stores
Answer: B
QUESTION NO: 2
Which ONE of the following is NOT an example of a long term financial need?
A. The financing of house purchase through a mortgage
B. Private saving to finance a pension
C. The need for working capital in small businesses
D. The financing of business investment
Answer: C
QUESTION NO: 3
If central bankers wished to agree and implement new measures to assure the security of global banks, which ONE of the following bodies would they use?
A. The WTO
B. The IMF
C. The World Bank
D. The G20
Answer: D
QUESTION NO: 4
In a recession which ONE of the following would be likely to experience the largest fall in demand for its products?
A. A motor insurance company
B. A toothpaste manufacturer
C. A chain of supermarket grocery stores
D. A manufacturer of industrial machine tools
Answer: D
QUESTION NO: 5
Which of the following is most likely to lead to a rise in the exchange rate of country's currency and a fall in the price of stocks shares?
A. An increase in the country's money supply
B. An increase in the deficit in the country's balance of payments on current account
C. Foreign investors purchasing shares on the country's capital markets
D. An increase in rates of interest within the country
Answer: D
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Updated: May 28, 2022