Exam (elaborations)
CFA Level 1 Sample Questions With Complete Solutions Latest Update
- Course
- Institution
CFA Level 1 Sample Questions With Complete Solutions Latest Update
[Show more]
Seller
Follow
Schoolflix
Reviews received
Content preview
CFA Level 1 Sample Questions With CompleteSolutions Latest Update
The feature of a well-functioning investment industry that gives investors the
ability to quickly buy and sell a significant amount of an investment without
having a material impact on the price is described as:
A liquidity
B competitive markets
C risk transfer - correct answers A
According to fundamental ethical and professional principles applicable to the
investment industry, which group should have its interests ranked first?
A Clients
B Employers
C Co-workers - correct answers A
Regulators often seek public consultation prior to the implementation of new
regulations in order to:
A ensure the new rules are favorable to those likely to be affected
B educate consumers and service providers on the new rules
C improve the final rules by undertaking a cost-benefit analysis - correct answers C
A financial advisory firm that implements internal policies regarding information
barriers, suitability standards, and restrictions on self-dealing is addressing issues
related to which of the following types of regulation?
A Sales practices rules
,B Trading rules
C Disclosure rules - correct answers A
The best financial statement to use to find information about what a company
owns and owes others is called the:
A income statement
B balance sheet
C cash flow statement - correct answers B
If two variables do not have a strong (linear) relationship, the correlation
coefficient between the two variables will be closest to:
A0
B -1
C +1 - correct answers A
In contrast to forward contracts, futures contracts:
A trade on organized exchanges
B have contract sizes tailored to investor needs
C have negotiable expiration dates - correct answers A
Which type of private equity strategy is most likely used to finance a start-up
company?
A Growth equity
B Buyout
C Venture capital - correct answers C
,In commercial real estate investment, the amount derived from discounting future
cash flows of lease and rental payments plus capital appreciation represents the
value of the:
A asset
B equity
C liability - correct answers A
The type of bank that is exclusively owned by its members is a:
A savings and loan bank
B commercial bank
C mutual bank - correct answers C
A form of pension plan in which the participant has some ability to determine how
pension contributions are invested is described as a(n):
A defined contribution plan
B endowment plan
C defined benefit plan - correct answers A
An investor attempting to replicate a price-weighted index would hold an equal:
A percentage of outstanding shares of each security in the index
B amount invested in each security in the index
C number of units (shares) of each security in the index - correct answers C
From the standpoint of taxes, investors will benefit from:
, A deferring taxes to the future if tax rates will be higher in the future
B realizing gains via stock repurchases as opposed to receiving the same gains as
dividends
C selling appreciated shares to meet cash needs instead of borrowing against
them - correct answers B
If a decrease in the selling price of a company's only product results in an increase
in the company's total revenue, the demand for the company's product is:
A elastic
B unit-elastic
C inelastic - correct answers A
Which of the following actions taken by a central bank is expansionary?
A Increasing the reserve requirement
B The purchase of government bonds
C Increasing its policy rate - correct answers B
Which of the following government actions will most likely lead to an increase in
the level of aggregate demand? A reduction in:
A transfer payments
B public spending on social goods and infrastructure
C the capital gains tax - correct answers C
If Mexico is running a large current account deficit with Canada, which of the
following will most likely occur?
A Canada will reduce its imports from Mexico
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Schoolflix. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $15.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81113 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now
Recently viewed by you
