Free CFA Level 1 Sample Quiz 20 Questions 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 Sample Quiz 20 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: 191:

Which of the following statements is NOT true relating to Standard IV (B.3) – Fair Dealing?

Option A : This standard covers the conduct of two groups: those who prepare recommendations and those who take investment action.

Option B : Members shall deal equally and objectively with all clients.

Option C : Only through the fair treatment of all parties can the investment management profession maintain the confidence of the investing public.

Option D : None of these answers.

Option E :This standard covers investment action such as general purchases, new issues, or secondary offerings.

Show/Hide Answer

Option B : 

The operative ward is “fairly,” not “equally.” The term “fairly” implies that the member must take care not to discriminate against any customers or clients when disseminating investment recommendations. Members could not possibly reach all clients “equally” (i.e., simultaneously). In addition, each client has unique needs, investment criteria and investment objectives.

CFA Level 1 Exam Question No: 192:

Grazelle Garbo has decided to change the recommendation on one of the firms she is following from hold to buy. She has communicated her research report to her senior manager, who is reviewing it. If the recommendation passes muster, it will be released three days from now. In the meanwhile, Grazelle has decided to follow her research and purchase the stock for several of her clients’ accounts for which the stock is an appropriate investment and for which she has discretionary investment powers. In the course of the luncheon meeting that same day, she mentioned that she had bought the stocks for some client accounts to one of her prospective clients and described her research which caused her to change her recommendation. Grazelle has

I. violated Standard IV (B.3) – Fair Dealing – by revealing the change in recommendation.
II. violated Standard IV (B.5) – Preservation of Confidentiality – by revealing the information about stock purchase.
III. did not violate the Ethics code.

Option A: I and II only.

Option B: II only.

Option C: III only.

Option D: I only.

Show/Hide Answer

Option D : I only.

Since Grazelle has not revealed any information about the specific client accounts or any confidential information, she is not in violation of Standard IV (B.5) – Preservation of Confidentiality. However, by revealing the information on the change in recommendation prematurely to one of her prospective clients, she has violated Standard IV (B.3) – Fair Dealing. The information is potentially quite valuable and giving to one client before another in a partisan fashion is a violation of the AIM code of Ethics.

Free CFA Level 1 Mock Exam Question No: 193:

Which of the following AIM Standards pertains to the use of professional designation

Option A: II (A).

Option B: І.

Option C:  III (A).

Option D: III (B).

Show/Hide Answer

Option A : II (A).

Standard II (A) – Use of Professional Designation – states the responsibility of AIM members, CFA charterholders and candidates for the CFA designation to use their professional designations, or their candidacies for the designation, properly and in a manner that does not mislead the investing public or others.

CFA Level 1 Free Practice Question No: 194:

In reference to AIMR-PPS, which of the following is/are true?
I. The PPS are explicitly incorporated in the AIM Code of Ethics and Standards of Professional Conduct.
II. In case of system incompatibilities, the firm can claim compliance for only those assets that are measured and monitored on compatible systems.
III. Plan sponsors, consultants and software vendors cannot claim compliance with the PPS; they can only endorse or require their clients to be in compliance.

Option A: I, II and III.

Option B: III only.

Option C: II and III only.

Option D: I only.

Show/Hide Answer

Option B : III only.

The PPS are an adjunct to the AIMR Code of Ethics and Standards of Professional Conduct and not explicitly incorporated in that framework. Compliance with PS is voluntary, not required.

Free CFA Practice Question No: 195:

Standard IV (B.2) deals with ______.

Option A: compensation.

Option B: fair dealing.

Option C: soft dollars.

Option D: competition.

Option E: none of these answers.

Option F: suitability.

Option G: proxy voting.

Option F: disclosure of conflicts.

Show/Hide Answer

Option F : disclosure of conflicts.

Standard IV (B.2) deals with the appropriateness and suitability of investment recommendations for each portfolio or client.

CFA Level 1 Sample Question No: 196:

The procedures for compliance with Standard IV (B.8), Disclosure of Referral Fees, recommend that you disclose all referral agreements __________.

Option A: at least orally.

Option Bany of these answers.

Option Corally or in writing.

Option D: in writing.

Show/Hide Answer

Option D : in writing.

Under Standard IV (B.8), members should disclose all agreements in order to be in compliance. Members should disclose, in writing, the existence and terms of any referral agreement to any client or prospective client as soon as the member learns that the client or prospective client has been referred by a firm receiving a referral fee.

Free CFA Level 1 Quiz Question NO: 197:

When taking on a new affiliation while working for his present employer, a member should:

Option A: notify his employer in writing and obtain written consent.

Option B: notify any prospective affiliation of his present employer.

Option C: not render services to a new client until the client gives consent in writing.

Option D: all of these answers are correct.

Show/Hide Answer

Option D : all of these answers are correct.

The procedures for compliance with Standard III (B) state that members should not render services until receiving written consent from their employer to all of the terms of the arrangement, after having provided written statements describing the types of services to be rendered to independent affiliations. A member should also disclose to prospective clients the identity of the member’s employer and clarify that the member is performing independently of the employer. The member should not render services until the client gives consent in writing indicating that the client has read and understood the member’s written disclosure statement.

Free CFA Level 1 Quiz Question NO: 198:

Relationships with and Responsibilities to the Profession are dealt with under:

Option A: Standard II.

Option B: Standard IV.

Option C: None of these answers.

Option DStandard I.

Option E: Standard V.

Option F: Standard III.

Show/Hide Answer

Option A : Standard II.

Relationships with and Responsibilities to the Profession are dealt with under Standard II.

Free CFA Practice Question No: 199:

Which AIMR standard states that members must inform employers of their duty to comply with the Code and Standards and must deliver a copy to their employers?

Option A: IX.

Option B: IV.

Option C: III A.

Option D: IIA.

Show/Hide Answer

Option C : III A.

Standard III (A) Obligation to Inform Employer of Code and Standards states: Members shall: “(1) Inform their employer in writing, through their direct supervisor, that they are obligated to comply with the Code and Standards and are subject to disciplinary sanctions for violations thereof, and (2) Deliver a copy of the Code and Standards to their employer if the employer does not have a copy.’

CFA Mock Exam Free Question No: 200:

When formulating an investment policy for a client, which of the following falls under the category “client identification?”

Option A: risk tolerance.

Option B: time horizon.

Option C: expected cash flows.

Option D: the existence of separate beneficiaries.

Option E: none of these answers.

Show/Hide Answer

Option D : the existence of separate beneficiaries.

“Client identification” requires that the existence of separate beneficiaries be considered. Risk tolerance is considered under “investor objectives.” Time horizon is considered under “investor constraints.’

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 370CFA Level 1 QBank: 371 to 380
CFA Level 1 QBank: 381 to 390CFA Level 1 QBank: 391 to 400
CFA Level 1 QBank: 401 to 410CFA Level 1 QBank: 411 to 420
CFA Level 1 QBank: 421 to 430CFA Level 1 QBank: 431 to 440
CFA Level 1 QBank: 441 to 450CFA Level 1 QBank: 451 to 460
CFA Level 1 QBank: 461 to 470
CFA Level 1 QBank: 481 to 480CFA Level 1 QBank: 491 to 500
CFA Level 1 QBank: 501 to 510CFA Level 1 QBank: 511 to 520
CFA Level 1 QBank: 521 to 530CFA Level 1 QBank: 531 to 540
CFA Level 1 QBank: 541 to 550CFA Level 1 QBank: 551 to 560
CFA Level 1 QBank: 561 to 570CFA Level 1 QBank: 571 to 580
CFA Level 1 QBank: 581 to 590CFA Level 1 QBank: 591 to 600
CFA Level 1 QBank: 601 to 610CFA Level 1 QBank: 611 to 620

Leave a Reply