CFA Level 1 Sample Questions with 100% sure answers
CFA Level 1 Sample Questions
Charles_K
The feature of a well-functioning A
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
According to fundamental ethical and A
professional principles applicable to the
investment industry, which group should
have its interests ranked first?
A Clients
B Employers
C Co-workers
Regulators often seek public consultation C
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
A financial advisory firm that implements A
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
,The best financial statement to use to find B
information about what a company owns
and owes others is called the:
A income statement
B balance sheet
C cash flow statement
If two variables do not have a strong A
(linear) relationship, the correlation
coefficient between the two variables will
be closest to:
A0
B -1
C +1
In contrast to forward contracts, futures A
contracts:
A trade on organized exchanges
B have contract sizes tailored to investor
needs
C have negotiable expiration dates
Which type of private equity strategy is C
most likely used to finance a start-up
company?
A Growth equity
B Buyout
C Venture capital
In commercial real estate investment, the A
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
The type of bank that is exclusively C
owned by its members is a:
A savings and loan bank
B commercial bank
C mutual bank
A form of pension plan in which the A
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
An investor attempting to replicate a C
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
, From the standpoint of taxes, investors B
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
If a decrease in the selling price of a 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
Which of the following actions taken by a B
central bank is expansionary?
A Increasing the reserve requirement
B The purchase of government bonds
C Increasing its policy rate
Which of the following government C
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
If Mexico is running a large current B
account deficit with Canada, which of the
following will most likely occur?
A Canada will reduce its imports from
Mexico
B The Mexican peso will depreciate
relative to the Canadian dollar
C There will be an increase in Canadian
exports to Mexico
If a company is liquidated, proceeds from B
asset sales are distributed to common
shareholders:
A before unsecured debt investor and
preferred shareholder, claims are paid
B after secured debt investor and
preferred shareholder, claims are paid C
after preferred shareholder claims are
paid but before unsecured debt investor
claims are paid
Which of the following is not a sovereign A
bond issue?
A State of New York municipal bond
B US Treasury note
C German bund
CFA Level 1 Sample Questions
Charles_K
The feature of a well-functioning A
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
According to fundamental ethical and A
professional principles applicable to the
investment industry, which group should
have its interests ranked first?
A Clients
B Employers
C Co-workers
Regulators often seek public consultation C
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
A financial advisory firm that implements A
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
,The best financial statement to use to find B
information about what a company owns
and owes others is called the:
A income statement
B balance sheet
C cash flow statement
If two variables do not have a strong A
(linear) relationship, the correlation
coefficient between the two variables will
be closest to:
A0
B -1
C +1
In contrast to forward contracts, futures A
contracts:
A trade on organized exchanges
B have contract sizes tailored to investor
needs
C have negotiable expiration dates
Which type of private equity strategy is C
most likely used to finance a start-up
company?
A Growth equity
B Buyout
C Venture capital
In commercial real estate investment, the A
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
The type of bank that is exclusively C
owned by its members is a:
A savings and loan bank
B commercial bank
C mutual bank
A form of pension plan in which the A
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
An investor attempting to replicate a C
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
, From the standpoint of taxes, investors B
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
If a decrease in the selling price of a 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
Which of the following actions taken by a B
central bank is expansionary?
A Increasing the reserve requirement
B The purchase of government bonds
C Increasing its policy rate
Which of the following government C
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
If Mexico is running a large current B
account deficit with Canada, which of the
following will most likely occur?
A Canada will reduce its imports from
Mexico
B The Mexican peso will depreciate
relative to the Canadian dollar
C There will be an increase in Canadian
exports to Mexico
If a company is liquidated, proceeds from B
asset sales are distributed to common
shareholders:
A before unsecured debt investor and
preferred shareholder, claims are paid
B after secured debt investor and
preferred shareholder, claims are paid C
after preferred shareholder claims are
paid but before unsecured debt investor
claims are paid
Which of the following is not a sovereign A
bond issue?
A State of New York municipal bond
B US Treasury note
C German bund
