Question 1

Which of the following is the act of entering into a financial contract in order to protect against unexpected, expected or anticipated changes in currency exchange rates?

Options :

A : Gold standard

B : Credit rating scores

C : Fiat currency

D : Currency hedging

Answer: D

Question 2

Nikolas is responsible for sourcing elevators for the new shopping mall. As one of the requirements, the lift must be safe and convenient for both customers, children and people with disabilities. Nikolas suggests to his team that they should include specific technical and safety standards to the specification before carrying out tendering for the purchase. Which of the following is a benefit of adding standards to the specification?

Options :

A : Standards ensures that the specification presents a very clear and accurate requirements

B : Standards ensures that the purchase is at the lowest cost

C : Standards ensures that the number of tenders is minimum

D : Standards ensures that the suppliers will conform to the agreement during contract period

Answer: A

Question 3

When conducting an ABC analysis- what category of items and type of suppliers would you typically find in the A category?

Options :

A : low value items, transactional suppliers

B : low value items, strategic suppliers

C : high value items, strategic suppliers

D : high value items, transactional suppliers

Answer: C

Question 4

Sourcing is part of the procurement cycle and is likely to be used in conjunction with which activities? (Select TWO)

Options :

A : Creating call-off orders

B : Raising purchase requisitions

C : Uploading goods received notes

D : Requesting quotations

E : Identifying potential suppliers

Answer: D,E

Question 5

In which circumstances would a procurement manager effectively use competitive tendering for the award of contracts?

Options :

A : When the value of the procurement is high and special tooling is a major factor

B : When the requirement is needed urgently and price is not the most important factor

C : When the suppliers have technical expertise, and the value of the procurement is relatively high

D : When the specification is likely to be continuously reviewed as the contract progresses

Answer: C

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