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100+ Free CIMA BA1 Practice Questions

Pass your CIMA Certificate in Business Accounting BA1: Fundamentals of Business Economics exam on the first try — instant access, no signup required.

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A project has a 0.6 probability of a $10,000 profit and a 0.4 probability of a $5,000 loss. The expected value of the project is:

A
B
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Key Facts: CIMA BA1 Exam

60

Objective Test Questions

CIMA Certificate in Business Accounting 2017 Syllabus

2 hours

Exam Duration

CIMA Certificate in Business Accounting 2017 Syllabus

100/150

Scaled Pass Mark

CIMA Certificate Assessment Rules

4 areas

Syllabus Sections (25/30/20/25%)

CIMA 2017 Syllabus

On demand

Year-Round Testing

Pearson VUE

Open entry

No Prerequisites

CIMA Certificate in Business Accounting

CIMA BA1 (Fundamentals of Business Economics) is a 2-hour computer-based objective test of 60 compulsory questions sat on demand at Pearson VUE or via OnVUE online proctoring. It is graded against a scaled pass mark of 100 out of 150. The 2017 syllabus weights four areas: Microeconomic and Organisational Context 30%, Macroeconomic and Institutional Context 25%, Financial Context 25%, and Informational Context 20%. The real exam mixes multiple choice, number entry and drag-and-drop items, but the knowledge tested is highly preppable with multiple-choice practice. BA1 is open-entry with no formal prerequisites and is the first of four Certificate subjects (BA1 to BA4).

Sample CIMA BA1 Practice Questions

Try these sample questions to test your CIMA BA1 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1In the circular flow of income, which of the following is classified as a 'withdrawal' (leakage) from the economy?
A.Savings
B.Investment
C.Government spending
D.Exports
Explanation: Withdrawals (leakages) reduce the circular flow and comprise savings, taxation and imports. Savings divert household income away from consumption of domestic output.
2Gross Domestic Product (GDP) measured by the expenditure method is the sum of consumption, investment, government spending and:
A.Total imports only
B.Net exports (exports minus imports)
C.Savings plus taxation
D.Depreciation
Explanation: The expenditure approach gives GDP = C + I + G + (X - M). Net exports add the value of exports and subtract imports, which are produced abroad.
3An economy has a marginal propensity to consume (MPC) of 0.8. What is the value of the multiplier?
A.1.25
B.0.20
C.5
D.8
Explanation: The multiplier equals 1 / (1 - MPC) = 1 / (1 - 0.8) = 1 / 0.2 = 5. An injection therefore raises national income by five times its initial value.
4Which type of unemployment is caused by a downturn in the business cycle and a general deficiency of aggregate demand?
A.Frictional unemployment
B.Structural unemployment
C.Seasonal unemployment
D.Cyclical (demand-deficient) unemployment
Explanation: Cyclical, or demand-deficient, unemployment rises during recessions when aggregate demand falls. It is the type most responsive to reflationary fiscal and monetary policy.
5A government pursuing expansionary fiscal policy to stimulate the economy would most likely:
A.Cut taxation and increase public spending
B.Increase interest rates
C.Raise taxation and cut public spending
D.Reduce the money supply
Explanation: Expansionary (reflationary) fiscal policy raises aggregate demand by cutting taxes and increasing government expenditure, typically widening the budget deficit.
6The main instrument of monetary policy used by a central bank to influence the level of aggregate demand is:
A.Changing the rate of corporation tax
B.Setting the base (interest) rate
C.Altering government capital expenditure
D.Imposing import quotas
Explanation: Monetary policy operates mainly through the central bank's base interest rate, which influences borrowing, saving and spending throughout the economy.
7Demand-pull inflation is best described as inflation caused by:
A.Rising costs of raw materials and wages
B.An increase in import prices alone
C.Aggregate demand exceeding aggregate supply
D.A fall in the velocity of circulation
Explanation: Demand-pull inflation occurs when aggregate demand outstrips the economy's productive capacity, pulling prices up. It is associated with booms and excess spending power.
8Under the quantity theory of money, the equation of exchange is stated as:
A.M + V = P + T
B.M divided by V equals P divided by T
C.MP = VT
D.MV = PT
Explanation: The Fisher equation of exchange is MV = PT, where M is the money supply, V the velocity of circulation, P the price level and T the volume of transactions.
9Which of the following is a recognised cost of high and unanticipated inflation to a business?
A.Erosion of the real value of fixed money assets
B.Greater certainty in long-term planning
C.Lower input costs
D.Increased real value of debt repayments
Explanation: Inflation erodes the real value of money holdings and fixed monetary assets such as cash and receivables. It also creates planning uncertainty and 'menu' and 'shoe-leather' costs.
10Economic growth in the short run is most accurately measured by an increase in:
A.The general price level
B.Real GDP
C.The money supply
D.The size of the labour force only
Explanation: Short-run economic growth is measured by a rise in real GDP, that is output adjusted to remove the effect of inflation. Real measures reflect genuine increases in production.

About the CIMA BA1 Exam

CIMA BA1, Fundamentals of Business Economics, is the first subject of the CIMA Certificate in Business Accounting. It covers the macroeconomic, microeconomic, informational and financial context of business through a two-hour computer-based objective test of 60 questions taken on demand at Pearson VUE.

Questions

60 scored questions

Time Limit

2 hours (120 minutes)

Passing Score

100 out of a scaled 150

Exam Fee

Set locally by country; check the AICPA & CIMA website for the current BA1 fee in your region (CIMA (AICPA & CIMA) / Pearson VUE)

CIMA BA1 Exam Content Outline

25%

Macroeconomic and Institutional Context of Business

National income, the circular flow, economic growth, the business cycle, inflation, unemployment, the balance of payments, international trade, exchange rates, fiscal and monetary policy, and institutions such as the IMF and WTO.

30%

Microeconomic and Organisational Context of Business

Demand and supply, elasticities, market equilibrium, price controls, market structures (perfect competition, monopoly, oligopoly, monopolistic competition), costs of production, economies of scale, market failure, and business organisation.

20%

Informational Context of Business

Data collection and sampling, summarising data, averages and dispersion, index numbers, time-series analysis, correlation and regression, probability and expected values, big data, and the presentation of business information.

25%

Financial Context of Business

The financial system, financial intermediaries, money and capital markets, sources of business finance, the time value of money, interest rates, the functions of money, foreign exchange risk, and financial regulation.

How to Pass the CIMA BA1 Exam

What You Need to Know

  • Passing score: 100 out of a scaled 150
  • Exam length: 60 questions
  • Time limit: 2 hours (120 minutes)
  • Exam fee: Set locally by country; check the AICPA & CIMA website for the current BA1 fee in your region

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

CIMA BA1 Study Tips from Top Performers

1Allocate study time by syllabus weight, giving the most attention to the 30% Microeconomic and Organisational area and the 25% Macroeconomic and Financial areas.
2Practise the short calculations (multiplier, elasticity, index numbers, expected values, compounding and discounting) until they are quick and automatic.
3Learn key definitions precisely, as many BA1 objective questions test exact terminology such as types of unemployment or market structures.
4Use timed mock objective tests of 60 questions in 2 hours so your pacing matches the real assessment.
5Because BA1 is on demand, only book the test once your mock scores are consistently above 100 out of 150.
6Keep an error log tagged by syllabus area so you can target weak topics before booking.

Frequently Asked Questions

How many questions are on the CIMA BA1 exam?

CIMA BA1 is a computer-based objective test of 60 compulsory questions to be completed in 2 hours. The exam mixes item types such as multiple choice, number entry and drag-and-drop, but the underlying knowledge is well suited to multiple-choice practice.

What is the CIMA BA1 pass mark?

CIMA grades its Certificate-level objective tests on a scaled score out of 150. You need 100 out of 150 to pass BA1, and your scaled result and the areas you were proficient in are confirmed after the test.

How is the CIMA BA1 syllabus weighted?

The 2017 Certificate syllabus weights BA1 as Microeconomic and Organisational Context 30%, Macroeconomic and Institutional Context 25%, Financial Context 25%, and Informational Context 20%. All four areas are examined.

Where and when can I sit CIMA BA1?

BA1 is available on demand throughout the year. You can sit it at a Pearson VUE test centre or take it online through OnVUE proctoring, booking a date and time that suits you subject to availability.

Are there any entry requirements for CIMA BA1?

No. BA1 is open-entry with no formal academic or work-experience prerequisites. You simply register as a CIMA Certificate in Business Accounting student and then book the assessment.

How much does CIMA BA1 cost?

BA1 assessment fees are set locally and vary by country, so you should check the current fee on the AICPA & CIMA website for your region. A one-off Certificate registration fee may also apply when you first register.

How long should I study for CIMA BA1?

Most candidates spend around 80 to 130 hours preparing, depending on their prior knowledge of economics and statistics. Because BA1 is on demand, you can book the test once your mock scores are consistently above the pass mark.

Is BA1 mostly multiple choice?

BA1 uses several objective item formats, including multiple choice, number entry and drag-and-drop, but it does not require written long-form answers. This makes multiple-choice practice an effective way to master the testable knowledge.