Free CeMAP 1 Quiz Test Unit 1 Topic 2

Unit 1 Topic 2

1 / 7

The European Union has issued a new DIRECTIVE. This means that each member state:

Has the choice of how to meet the Directive’s objectives.

Must implement the Directive, provided the member state is part of the Eurozone.

Must implement the Directive in its entirety within the specified timescale.

Can choose whether or not to adopt the Directive.

2 / 7

What does gross domestic product (GDP) represent? A measure of the value of:

Demand within a country over a specified period.

National average earnings within a country over a specified period of time.

Goods and services within a country over a specified period of time.

Money supply within a country over a specified period of time.

3 / 7

What is the target range of inflation that the government is hoping to achieve as measured by the Consumer Price Index?

4 / 7

Under what circumstances, if any, can a nation state opt out of a regulation laid down by the European Council and Council of Ministers?

Only if specific dispensation has been granted

Only if the member has joined within the previous three years

Only if an alternative approach has been agreed

None

5 / 7

Within the UK's regulatory framework for the financial services industry, which entity has assumed the responsibilities of the third tier?

The Lenders Code

The Building Societies Commission

The PRA (Prudential Regulation Authority) and FCA (Financial Conduct Authority)

The Financial Ombudsman Service

6 / 7

Which policy or policies, if any, do governments employ to achieve their long-term economic objectives?

Both monetary and fiscal policies

Monetary policy exclusively

Neither monetary nor fiscal policies

Fiscal policy exclusively

7 / 7

Which index does the government use to assess the inflation rate?

FTSE 100 index

Retail prices index

Construction and building prices index

Consumer prices index

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