Question 1

In the short term, if an organisation's income is lower than its expenditure, it is an example of:

• A. financial intermediation
• B. lack of financial synchronisation
• C. why equity capital is needed
• D. financial surplus

Question 2

The following table reports are for five hotels belonging to the same hotel chain, the rank in terms of
sales performance (with 1 - best average score obtained in customer reviews, and the rank in terms
of average score from customer reviews (with 1 = best average ..
Calculate the Spearman's rank correlation coefficient to one decimal place:

• A. 1.8
• B. 2.8
• C. 3.8
• D. 4.8

Question 3

If a central bank wished to increase the supply of money and credit in the economy it would:

• A. sell bonds and raise interest rates
• B. buy bonds and reduce interest rates
• C. sell bonds and reduce interest rates
• D. buy bonds and raise interest rates

Question 4

Which of the following is NOT a feature of the data?

• A. Big data analysis requires companies to invest in specialist data analytic skills
• B. Big data can sometimes be harvested from electronic devices such as smart meters and GPS systems
• C. Big data is such a large volume that it cannot be analysed through spreadsheets
• D. Big data is purposefully collected from carefully designed samples through surveys and interviews

Question 5

Which of the following will NOT cause an increase in the demand for public transport in City L?

• A. A change in consumer preferences favoring transportation that reduces carbon emissions
• B. An increase in the price of car insurance
• C. A drop in the price of City L cab rides
• D. An increase in the population of City L.

Question 6

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

Question 7

Which of the following is also known as the International Bank for Reconstruction and Development?

• A. The European Central Bank
• B. The World Trade Organisation
• C. The International Monetary Fund
• D. The World Bank

Question 8

The following ogive shows the cumulative frequency of the ages of a small sample of entrepreneurs.

Which THREE of the following statements are true?

• A. Four entrepreneurs were aged between 30 and 40
• B. The sample included 10 entrepreneurs
• C. The sample did not include any entrepreneurs older than 65.
• D. Two entrepreneurs were aged between 40 and 50
• E. The sample did not include any entrepreneurs younger than 20
• F. Most entrepreneurs were younger than 40.

Question 9

DRAG DROP
Assuming Country A has a floating exchange rate which of the following would lead to a fall of the
exchange rate for Country A and which rise m the exchange rate for Country A.
Complete the table below by matching the relevant label on the exchange rate of the scenarios
listed.

Question 10

Which of the following is an example of an indirect tax?

• A. Corporation tax
• B. Income tax
• C. Inheritance tax
• D. Sales tax

Question 11

If country A imposes a quota on imports from country B, what is the direct effect of the quota?

• A. The price of imports into country A will rise
• B. The price of imports into country A will fall
• C. The quantity of imports into country A will fall
• D. The quantity of imports into country A will rise

Question 12

Which TWO reasons support the argument that global firms may facilitate globalisation?

• A. Global firms can lobby governments to open up markets for free trade
• B. Global firms can bring stability to international stock markets
• C. Global firms can be immune from national concerns
• D. Global firms can forfeit national laws under certain conditions
• E. Global firms can lead to greater homogemsation of tastes and values across different countries.

Question 13

If the production of a good involves an external social cost, resource allocation could be improved by:

• A. providing a subsidy for the consumers of the good
• B. imposing an indirect tax on the good
• C. providing a subsidy for the producers of the good
• D. the government imposing price controls to reduce the price of the good.

Question 14

Based on a trade balance between Country A and Country B over a ten year period, the underlying
trend of the trade balance is represent equation
-114.027 -1.47x
where x is the time period expressed in years.
Assuming an additive forecasting model, with a seasonal factor of 82 6, then the forecast for year
2016, in whole units is:

• A. -113968
• B. -113868
• C. -113768
• D. -113668

Question 15

Which TWO of the following would be objectives for internal stakeholders in a profit-seeking
organisation?

• A. improving the working condition and pay levels for the employees
• B. Maximising shareholder wealth
• C. Meeting the legally required environmental standards in the industry
• D. Raising the level of dividends paid out
• E. Increasing the remuneration packages of the company directors