Hi CFA Aspirants, welcome to AKVTutorials. Are you preparing for CFA Level 1, 2, 3 exams for making a career in CFA (Charted Financial Analyst). According to CFA Wikipedia, CFA The Chartered Financial Analyst (CFA) program is a postgraduate professional certification offered internationally by the American-based CFA Institute. A candidate who successfully completes the program and meets other professional requirements is awarded the “CFA charter” and becomes a “CFA charter holder”. Therefore, you need CFA Study Notes and CFA Level 1 Practice Test 5 Questions Answer Keys AMBIPi.
In this article, you will get Free CFA Level 1 Mock Exam Practice Questions.
Free CFA Level 1 Mock Practice Exam Questions Bank
Free CFA Level 1 Practice Question No: 41:
Standard IV (B.5) deals with
Option A : Disclosure of Conflicts to Clients and Prospects
Option B : Prohibition against Use of Material Nonpublic Information.
Option C : None of these answers.
Option D : Preservation of Confidentiality.
Option E : Prohibition against Misrepresentation.
Option F : Priority of Transactions.
Option G : Disclosure of Referral Fees.
Option H : Performance Presentation.
Show/Hide Answer
Option D : Preservation of Confidentiality.
Standard IV (B.5) deals with the preservation of confidentiality of information communicated by clients or employers concerning matters within the scope of the client-member, employer-member relationship
CFA Level 1 Exam Question No: 42:
Which of the following can be found in Standard II?
Option A: Members shall not participate in plagiarism.
Option B: Members shall maintain appropriate records to support the reasonableness of recommendations.
Option C: Members shall maintain knowledge of and comply with all applicable laws.
Option D: Members shall not undertake any independent practice in competition with employer without written consent.
Option E: Members shall make reasonable efforts to achieve public dissemination of material nonpublic information disclosed in breach of a duty
Show/Hide Answer
Option A : Members shall not participate in plagiarism.
Standard II states: “Members shall not copy or use, in substantially the same form as the original, material prepared by another without acknowledging and identifying the name of the author, publisher or source of such material.’
Free CFA Level 1 Mock Exam Question No: 43:
Social factors –
Option A: none of these answers.
Option B: must be a primary consideration of investments because of the ERISA rule.
Option C: may never be a primary consideration of investments.
Option D: may be a primary consideration of investments, depending on the guidelines of the investment policy.
Option E: must be a primary consideration of investments because of the prudence rule.
Option F: must be a primary consideration of investments because of the loyalty rule.
Show/Hide Answer
Option C : may never be a primary consideration of investments.
ERISA guidelines issued by the U.S. Department of Labor state that ERISA prudence standard requires a fiduciary to make investment decisions first on grounds of economic and investment merit. Consideration of social factors may be an incidental, but never primary, consideration of investments that are equal in economic and financial terms
CFA Level 1 Free Practice Question No: 44:
Jackson, an analyst, decides not to change a recommendation from buy to sell because she wants to sell her holdings first. Is there a standards violation?
Option A: No.
Option B: Yes, Standard IV (A.2), Research Reports.
Option C: Yes, Standard III (B), Duty to Clients and Prospects.
Option D: Yes, Standard IV (B.4), Priority of Transactions
Show/Hide Answer
Option D : Yes, Standard IV (B.4), Priority of Transactions
Jackson violated Standard IV (B.4) – Priority of Transactions Jackson has decided that she did not want to wait until all her clients have had the opportunity to sell first. Thus, her decision not to change her recommendation until she accomplished her own financial aims will result in losses to her clients if the value of the holding subsequently declines.
Free CFA Practice Question No: 45:
Standard Ill includes rules on which of the following
Option A: Professional Misconduct.
Option B: All of these answers.
Option C: Prohibition against Plagiarism.
Option D: Obligation to Inform Employer of Code and Standards.
Option E: Use of Professional Designation.
Option F:None of these answers.
Show/Hide Answer
Option D : Obligation to Inform Employer of Code and Standards.
Standard III deals with Obligation to Inform Employer of Code and Standard, Duty to Employer, Disclosure of Conflicts to Employer, Disclosure of Additional Compensation Arrangements and Responsibilities of Supervisors
CFA Level 1 Sample Question No: 46:
Standard II includes rules on which of the following?
Option A: Professional Misconduct.
Option B: Prohibition against Plagiarism.
Option C: All of these answers.
Option D: Use of Professional Designation.
Show/Hide Answer
Option C : All of these answers.
Standard II – Relationships with and Responsibilities to the Profession – includes rules on the use of Professional Designation, Professional Misconduct and Prohibition against Plagiarism.
Free CFA Level 1 Quiz Question NO: 47:
Standard III (C) deals with conflicts of interest of a member with ______.
Option A: colleagues at the same firm.
Option B: the employer.
Option C: none of these answers.
Option D: the client.
Option D: other investment professionals.
Option D:the investing public
Show/Hide Answer
Option B : the employer.
Standard III (C) deals with conflicts of interest in any actions or decisions of a member and focuses on responsibility to the employer. By complying with employer guidelines, members allow their employers to avoid potentially embarrassing and costly violations.
Free CFA Level 1 Quiz Question NO: 48:
Which of the following AIM Standards states that the financial analyst must exercise diligence and thoroughness in making investment recommendations or taking investment actions?
Option A: III B.
Option B: IV A.1.
Option C: I.
Option D: None of these answers
Show/Hide Answer
Option B : IV A.1.
Standard IV (A. 1) – Reasonable Basis and Representations states:
“Members shall exercise diligence and thoroughness in making investment recommendations or in taking investment actions.”
Free CFA Practice Question No: 49:
Various countries’ securities laws permit a manager to pay up for goods and services without violating the manager’s fiduciary duty, so long as the requirements of the law are followed. Each of the following are typical requirements, except:
Option A: the goods or services purchased must be for “brokerage service.”
Option B: the commission paid must be reasonable in relation to the research and execution services received.
Option C: none of these answers.
Option D: at all times, the manager must seek best price and execution.
Option E: the manager’s soft-dollar practice must be disclosed.
Show/Hide Answer
Option A : the goods or services purchased must be for “brokerage service.”
The good and services purchased must be for “research service.
CFA Mock Exam Free Question No: 50:
According to Standard IV (B.4), Priority of Transactions, is recommended when a manager has purchased a security in violation of trading policy.
Option A: forfeit of wages for one month.
Option B: a fine imposed by the SEC.
Option C: a civil damage.
Option D: public censure.
Option E: disgorgement
Show/Hide Answer
Option E : disgorgement
This question relates to the compliance procedures for Standard
IV (B.4), one of which states that firms should establish disciplinary procedures to enforce the standard. If a manager has purchased a security in violation of trading policy, disgorgement is recommended. Managers should disgorge all profits and assume any losses from the trade.
