CMT Level 2 - Sample Set C – 150 QUESTIONS- WITH COMPLETE SOLUTIONS

Which of the following is a component of the Code of Ethics? CFA Institute members shall: a) use particular care in determining applicable fiduciary duty. b) use reasonable care and exercise independent professional judgment. c) maintain and improve the competence of other investment professionals. d) practice and encourage others to practice in a professional and an ethical manner. correct answer: d. practice and encourage others to practice in a professional and an ethical manner. Reference: CFA Institute Code of Ethics and Standards Allen Johnson, CMT, is working in the Singapore office of German Investment Corporation. From an informal conversation, Allen learns that the company's most recent annual report contains misappropriated information. No one at the Singapore office expresses concern, however, because there has been no breach of Singapore's law. Barrett should: a) do nothing because the branch is outside of German jurisdiction. b) seek advice from the company counsel to determine appropriate action. c) do nothing because the branch is outside of Singapore's jurisdiction. d) disassociate himself from the case with a written report to his supervisor. correct answer: b. seek advice from the company counsel to determine appropriate action. Reference: CFA Institute Code of Ethics and Standards