Free CIPS A6 Exam Actual Questions

Note: Premium Questions for A6 were last updated On May. 03, 2024 (see below)

Question #1

Which of the following best describes the term 'monetary policy'?

AThe government controlling economic activity by regulating the level of taxation

BThe government controlling economic activity by influencing public service provision

CThe government controlling economic activity by influencing the rate of interest

DThe government controlling economic activity by regulating monopolies.

Reveal Solution

Correct Answer: B

Question #2

According to economic theory, which of the following best describes what should happen to the sales of a product if the government increases the tax on them?

AThe sales increase

BThe sales decrease

CThe sales remain the same

DThe sales double.

Reveal Solution

Correct Answer: C

Question #3

Which of the following headings would appear in the current account of a country's balance of payments?

ATransactions in goods and services

BTransactions in external assets and liabilities

CTransactions in large sums of money

DTransactions in stocks and shares.

Reveal Solution

Correct Answer: C

Question #4

Which of the following best describes the term 'inflation'?

AToo little money chasing too many goods

BToo much money chasing too few goods

CToo little money chasing too few goods

DToo much money chasing too many goods.

Reveal Solution

Correct Answer: A

Question #5

Which of the following best describes the effect of inflation.

AToo many people chasing too many goods

BToo few people chasing too few goods

CToo many people chasing too few goods

DToo few people chasing too many goods.

Reveal Solution

Correct Answer: A

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