Free CIPS A6 Exam Actual Questions

The questions for A6 were last updated On Dec 17, 2024

Question No. 1

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.

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Correct Answer: C

Question No. 2

Which of the following is the most likely consequence of government decreasing interest rates? (2 marks)

APeople spend more

BPeople spend less

CThe economy slows down

DThe cost of borrowing goes up

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Correct Answer: A

Question No. 3

Which of the following best defines the term 'Exchange rate'?(2 marks)

AThe amount of business transacted between one country and another during a year

BThe speed with which a company receives payment for goods or services sold

CThe extent of barter transactions in a particular country

DThe value of one country Oscurrency measured against that of another.

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Correct Answer: D

Question No. 4

In economic theory, which of the following statements best describes what is available and what is wanted? (2 marks)

ATime and motion

BSupply and demand

CResearch and development

DInput and output

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Correct Answer: B

Question No. 5

Which of the following best describes 'below the line' promotion?

AProviding free gifts to remind potential customers of the seller's organization

BMethods of securing a buyer's loyalty to a seller, which are potentially illegal, for example, bribery

CAdvertising which targets specific types of buyer, for example, advertising in a particular trade magazine

DAdvertising at global sporting events so that advertising in individual countries is not required.

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Correct Answer: B