C FA I N S T I T U T E — L E V E L I
CFA Level 1
Mock Exam 2 - Section 1
Comprehensive Practice Questions with Detailed Rationales
CFA Level 1 — 35 Practice Questions
Edition 1 · July 2026 · 35 Practice Questions
✓ Institution: CFA Institute — Chartered Financial Analyst Level 1 Examination
Table of Contents
1. Instructions for Use 2
2. Practice Questions with Answers & Rationales 2
,CFA Level 1 · CFA Institute Page 1
, CFA LEVEL 1 MOCK EXAM 2 - SECTION 1 INSTRUCTIONS & PRACTICE QUESTIONS
How to Use This Guide
Read each stem, choose your answer, then check the rationale directly below it. The correct
option is marked, and each wrong option is explained so you understand why it's wrong — not
just that it is. This guide contains 35 practice questions covering key content areas for the CFA
Level 1 Mock Exam 2 - Section 1.
Category: CFA Level 1 — Mock Exam 2 - Section 1
1 The relationship between an investment professional and her clients is
predominately based on trust, most likely because the investment professional:
A Sells or gives advice related to tangible products and services.
B Has specialized knowledge, leading her to have more power.
C Has access to information on which to base investment decisions.
Why B is correct: Investment professionals have access to specialized knowledge and often
have better access to information that gives them an advantage and more power than the
client. Clients expect their advisers to use this knowledge and information to their benefit,
not for the investment professional to take advantage of them.
A — Investment professionals sell or give advice on intangible products, not tangible
products, so trust is harder for the client to give.
C — Investment professionals sometimes have access to more information on which to make
investment decisions; however, it is not unlimited.
CFA Level 1
Mock Exam 2 - Section 1
Comprehensive Practice Questions with Detailed Rationales
CFA Level 1 — 35 Practice Questions
Edition 1 · July 2026 · 35 Practice Questions
✓ Institution: CFA Institute — Chartered Financial Analyst Level 1 Examination
Table of Contents
1. Instructions for Use 2
2. Practice Questions with Answers & Rationales 2
,CFA Level 1 · CFA Institute Page 1
, CFA LEVEL 1 MOCK EXAM 2 - SECTION 1 INSTRUCTIONS & PRACTICE QUESTIONS
How to Use This Guide
Read each stem, choose your answer, then check the rationale directly below it. The correct
option is marked, and each wrong option is explained so you understand why it's wrong — not
just that it is. This guide contains 35 practice questions covering key content areas for the CFA
Level 1 Mock Exam 2 - Section 1.
Category: CFA Level 1 — Mock Exam 2 - Section 1
1 The relationship between an investment professional and her clients is
predominately based on trust, most likely because the investment professional:
A Sells or gives advice related to tangible products and services.
B Has specialized knowledge, leading her to have more power.
C Has access to information on which to base investment decisions.
Why B is correct: Investment professionals have access to specialized knowledge and often
have better access to information that gives them an advantage and more power than the
client. Clients expect their advisers to use this knowledge and information to their benefit,
not for the investment professional to take advantage of them.
A — Investment professionals sell or give advice on intangible products, not tangible
products, so trust is harder for the client to give.
C — Investment professionals sometimes have access to more information on which to make
investment decisions; however, it is not unlimited.
