Free CFA Level 1 Practice Test 1 Questions CFA Mock Exam Answer Keys AMBIPi

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 Free CFA Level 1 Practice Test 1 Questions CFA Mock Exam 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: 1:

According to the AIMR-RPS, _________ are defined to include all discretionary and non discretionary assets.

Option A : individually managed assets

Option B : individually investor’s assets

Option C : total firm assets

Option D : global assets

Show/Hide Answer

Option C : 

Total firm assets are defined to include all discretionary and nondiscretionary assets. Total firm assets don’t refer to assets underlying overlay investment strategies, such as currency overlay, options and futures overlays, securities lending programs and asset allocation overlay strategies, unless the firm actually manages the underlying assets.

CFA Level 1 Exam Question No: 2:

Standard IV (B.7) deals with ________.

Option A: priority of Transactions

Option B: None of these answers

Option C: Disclosure of Referral Fees

Option D: Performance Presentation

Option E: Prohibition against Misrepresentation

Option F: Disclosure of Conflicts to Clients and Prospects

Option G: Preservation of Confidentiality

Option H: Prohibition against Use of Material Nonpublic Information

Show/Hide Answer

Option F : 

Standard IV (B.7) states that members shall disclose to their clients all matters that could become potential conflicts. These include beneficial ownership of securities or other investments, that reasonably could be expected to impair the member’s ability to make unbaised and objective recommendations.

Free CFA Level 1 Mock Exam Question No: 3:

Standard III (D) deals with ________.

Option A: Professional Misconduct

Option B: Use of Professional Designation

Option C: Plagiarism

Option D: Fundamental Responsibilities

Option E: None of These Answers

Option F: Obligation to Inform Employer of Code and Standard

Show/Hide Answer

Option E : 

Standard I deals with Fundamental Responsibilities. Standard II (A) deals with Use of Professional Designation. Standard II (B) deals with Professional Misconduct. Standard II (C) deals with Plagiarism. Standard III (A) deals with Obligation to inform Employer of Codes and Standards. Standard III (D) deals with the Disclosure of Additional Compensation Arrangements.

CFA Level 1 Free Practice Question No: 4:

Another name for “access” person is  ________.

Option A: None of These Answers

Option B: Supervisor

Option C: Ombudsman

Option D: Guardian

Option E: Fiduciary

Option F: Covered Person

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Option F : 

Access or covered persons have knowledge of pending or actual investment recommendation or action. The firm’s definition of access (covered) person should be broad enough to cover all people with that knowledge.

Free CFA Practice Question No: 5:

Which of the following is/are true about the Performance Presentation Standards?

I. A member who compiles with the mandatory requirements of the PPS but does not follow the recommendation requirements can publicity claim compliance with the PPS.

II. The PPS are designed to be primarily a performance measurement framework.

III. The Standards are not designed to enhance or detract from the presentation of historical results.

Option A: III Only

Option B: II and III Only

Option C: I, II and III 

Option D: I and III only

Show/Hide Answer

Option D : 

The PPS are designed to be primarily a performance presentation system, not a performance measurement system. The Standards are not designed to enhance or detract from the usefulness of the information in historical results, through it does restrict the way they are to be presented. The PPS are voluntary standards and not necessarily binding on AIMR members. To claim compliance, members must abide by the mandatory requirements, at the very least.

CFA Level 1 Sample Question No: 6:

If a firm uses non-discretionary leverage, it must present performance using:

Option A: Both actual returns and all-cash basis.

Option B: All-cash basis i.e. removing leverage effects.

Option C: Actual returns

Option D: None of These Answers

Show/Hide Answer

Option B : 

According to Section B of the PPS Standards – “Calculation of Returns” – for non-discretionary leverage, performance must be presented on an all-cash returns basis.

Free CFA Level 1 Quiz Question NO: 7:

_______ and other hybrid securities must be treated consistently across and within composites.

Option A: Portfolios

Option B: Convertibles

Option C: Assets

Option D: Bond

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Option B : 

This is one of the requirements which is mandatory in order to be in compliance with the PPS.

Free CFA Level 1 Quiz Question NO: 8:

Standard IV (B.8) Disclosure  of Referral Fees, includes ________.

Option A: Referrals fees paid in cash

Option B: Referrals fees paid in Kind

Option C: Soft dollar referrals fees.

Option D: All of these answers

Show/Hide Answer

Option D : 

Under Standards IV (B.8), appropriate disclosure involves disclosing the nature of the consideration or benefits given or received for the recommending of services. Consideration includes all fees, whether paid in cash, in soft dollars or in kind.

Free CFA Practice Question No: 9:

Which of the following relating to compliance procedures for complying with Standard III (E) is false? The compliance procedure should.

Option A: Outline permissible conduct.

Option B: Delineate procedures for reporting violations and sanctions.

Option C: Designate a team of outside colleagues to form a review board.

Option D: Outline the scope of the procedures.

Option E: be easy to understand

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Option C : 

The compliance officer should be designated from within the firm.

CFA Mock Exam Free Question No: 10:

According to the AIMR-PPS for venture and private placements, ________ internal rate of return must be presented since inception of the fund and be net of fees, expense and carry to the limited partner.

Option A: limited 

Option B: extended

Option C: cumulative

Option D: general

Show/Hide Answer

Option C : 

Cumulative internal rate of return must be presented since inception of the fund and be net of fees, expenses and carry to the limited partner. IRR must be calculated based on cash-on-cash returns plus residual value.

CFA Notes Materials and QBanks

CFA Level 1 Notes
CFA Level 1 QBank: 1 to 10CFA Level 1 QBank: 11 to 20
CFA Level 1 QBank: 21 to 30CFA Level 1 QBank: 31 to 40
CFA Level 1 QBank: 41 to 50CFA Level 1 QBank: 51 to 60
CFA Level 1 QBank: 61 to 70CFA Level 1 QBank: 71 to 80
CFA Level 1 QBank: 81 to 90CFA Level 1 QBank: 91 to 100
CFA Level 1 QBank: 101 to 110CFA Level 1 QBank: 111 to 120
CFA Level 1 QBank: 121 to 130CFA Level 1 QBank: 131 to 140
CFA Level 1 QBank: 141 to 150CFA Level 1 QBank: 151 to 160
CFA Level 1 QBank: 161 to 170CFA Level 1 QBank: 171 to 180
CFA Level 1 QBank: 181 to 190CFA Level 1 QBank: 191 to 200
CFA Level 1 QBank: 201 to 210CFA Level 1 QBank: 211 to 220
CFA Level 1 QBank: 221 to 230CFA Level 1 QBank: 231 to 240
CFA Level 1 QBank: 241 to 250CFA Level 1 QBank: 251 to 260
CFA Level 1 QBank: 261 to 270CFA Level 1 QBank: 271 to 280
CFA Level 1 QBank: 281 to 290CFA Level 1 QBank: 291 to 300
CFA Level 1 QBank: 301 to 310CFA Level 1 QBank: 311 to 320
CFA Level 1 QBank: 321 to 330CFA Level 1 QBank: 331 to 340
CFA Level 1 QBank: 341 to 350CFA Level 1 QBank: 351 to 360
CFA Level 1 QBank: 361 to 370

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