CIMA Exam CIMAPRA17-BA1-1 Topic 1 Question 84 Discussion

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

Question #: 84
Topic #: 1

[All CIMAPRA17-BA1-1 Questions]

Which one of the following methods of government borrowing is most likely to be inflationary?

The sale of:

ATreasury bills to the banking sector

BLong-term securities to insurance companies and pension funds

CNational savings securities to the general public

DLong-term securities to the banking sector

Show Suggested Answer

Suggested Answer: C

by Ryan at Apr 11, 2024, 03:34 AM

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Luz

1 months ago

Option A? More like 'Trea$ury bills to the banking $ector'. Inflation, here we come!

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Cruz

C) National savings securities to the general public

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Val

5 days ago

Yeah, selling treasury bills to the banking sector can definitely be inflationary.

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Norah

7 days ago

A) Treasury bills to the banking sector

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Marget

1 months ago

Ah, the age-old question of which method of borrowing is the least inflationary. I'm just hoping the answer isn't 'All of the above'!

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Val

5 days ago

C) National savings securities to the general public

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Essie

11 days ago

B) Long-term securities to insurance companies and pension funds

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Florinda

15 days ago

A) Treasury bills to the banking sector

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Oretha

2 months ago

Hmm, B seems like the safest bet. Insurance companies and pension funds are less likely to go on a spending spree with those long-term securities.

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Bernadine

14 days ago

C) National savings securities to the general public

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Theola

19 days ago

B) Long-term securities to insurance companies and pension funds

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Lavera

1 months ago

A) Treasury bills to the banking sector

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Silvana

2 months ago

I'm going with C. Selling securities to the general public is less likely to stoke the flames of inflation, right?

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Sanjuana

25 days ago

D) Long-term securities to the banking sector

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Rolland

1 months ago

C) National savings securities to the general public

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Stevie

1 months ago

B) Long-term securities to insurance companies and pension funds

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Danica

1 months ago

A) Treasury bills to the banking sector

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Carmela

2 months ago

I see your point, Lynelle. Selling long-term securities to insurance companies and pension funds could lead to increased demand for credit, potentially causing inflation.

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Lynelle

2 months ago

I disagree, I believe the sale of long-term securities to insurance companies and pension funds could be more inflationary.

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Ardella

2 months ago

Option D, definitely! Borrowing from the banking sector is like pouring gasoline on the fire of inflation.

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Tiera

1 months ago

I agree, borrowing from the banking sector can lead to an increase in the money supply and drive up prices.

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Dana

2 months ago

Option D, definitely! Borrowing from the banking sector is like pouring gasoline on the fire of inflation.

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Rolland

2 months ago

I think the sale of Treasury bills to the banking sector is most likely to be inflationary.

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