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  1. Home
  2. IIA Certification
  3. IIA-CIA-Part3 Exam
  4. IIA.IIA-CIA-Part3.v2025-07-07.q379 Dumps
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Question 6

If a central bank wishes to implement an expansionary monetary policy, which one of the following actions would it take?

Correct Answer: B
A central bank affects monetary policy primarily through the purchase and sale of government securities. A purchase of securities is expansionary because it increases bank reserves and the money supply. However, the sale of government securities by the central bank contracts the money supply by removing resources from the economy.
Lowering the reserve requirement the percentage of deposits that a bank must keep on hand) also expands the money supply by increasing the loan able funds held by banks.
Similarly, lowering the rate at which member banks may borrow from the central bank encourages borrowing and increases the money supply.
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Question 7

Which of the following organization structures would most likely be able to cope with rapid changes and uncertainties?

Correct Answer: C
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Question 8

The economic order quantity can be calculated using the following formula:
Which of the following describes how the optimal order size will change if the annual demand increases by 36 percent?

Correct Answer: C
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Question 9

Which of the following responsibilities would ordinary fall under the help desk function of an organization?

Correct Answer: D
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Question 10

When assessing the adequacy of a risk mitigation strategy, an internal auditor should
consider which of the following?
1.Management's tolerance for specific risks.
2.The cost versus benefit of implementing a control.
3.Whether a control can mitigate multiple risks.
4.The ability to test the effectiveness of the control.

Correct Answer: B
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