Review 22 CFA-R-LEVEL-1 practice questions with answer explanations and community insights.
Question 1
Standard IV (B.7) deals with ________.
Priority of Transactions
None of these answers
Disclosure of Referral Fees
Performance Presentation
Prohibition against Misrepresentation
Disclosure of Conflicts to Clients and Prospects
Preservation of Confidentiality
Prohibition against Use of Material Nonpublic Information
Question 2
________ establishes the fiduciary principles for U.S. corporate pension plans.
AIMR
PSPC
ERISA
WTO
UMIFA
None of these answers
RELAC
Question 3
Each of the following is true regarding Standard II (A), except:
You must be registered for the next CFA exam in order to call yourself a candidate.
This standard relates to business cards and letterheads.
This standard does not relate to oral statements.
There is no designation for someone who has passed Level I, II, or III.
All of these answers.
Candidates may state that they have completed Level I, II, or III.
Question 4
Maria Golino is a financially savvy client of Hector Gomez, a portfolio manager with a small investment firm. Maria recently directed Hector to execute all trades on her behalf with Omega Brokerage. Omega charges higher commissions than most other brokerage firms but in this case, has agreed to provide research to Hector on behalf of Maria. Hector does not object to this and starts directing Maria's trades to Omega. Hector has
violated Standard IV (B.1) - Fiduciary Duties.
violated Standard IV (A.2) - Research Reports.
violated Standard IV (B.8) - Disclosure of Referral Fees.
not violated any standards.
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