CFA Practice Question

There are 361 practice questions for this study session.

CFA Practice Question

Christina Boyer no longer pays her dues to the CFA Institute and is no longer a member, although she successfully acquired her charter ten years ago. She no longer practices as a financial analyst and has been a homemaker for the past three years. At a dinner honoring her as the Volunteer of the Year for the local high school girl's softball team, the brochure has printed her name as Christina Boyer, CFA, and she is introduced as such by the president of the softball league.
A. No standard has been violated, since Christina had successfully performed all the charter requirements ten years ago.
B. Christina has violated Standard VII by using the designation CFA after her name.
C. The brochure was not published by Christina, so she can claim that no violation on her part has occurred.
Explanation: While it is not a violation to inform people of her prior accomplishment in attaining the CFA charter, she cannot use the CFA designation because she is no longer a member and does not pay her dues or sign the annual professional statement. The CFA designation can only be used by dues-paying members and -charterholders.

User Contributed Comments 18

User Comment
NufaNka I don't understand. She can't refrain others to do an error about it..!
nice yes but if she does not take any action she is implicitly accepting the titles which don't belong to her. CFA Institute is very stiff in pushing members to pay dues!

You need to answer so in your exam. In reality, who cares? I've seen lots of people on Wall Street who use CFA inappropriately but who is checking?
drumcode in my view she hasn't violated any standard unless she's asked for CFA to be printed after her name...
jam99003 I think the issue is that she knows (or should know) it is inappropriate for the title to be used after the name, and didn't correct it. However, in the real world I don't see this being an issue.
andrewevelyn Never mind the real world, tell the CFA institute what it wants to hear!
manav7574 In the statement it is no-where mentioned that it was Christina who furnished the information that was printed in the brochure.
jumpshot Agree best to tell CFAI what it wants to hear.
hannovanwyk If she had no part in stating that she was a CFA charterholder, and it was done in a way that she could not have known, she cant be held accountable for misuse.
ROJIE I don't see why she would be in violation for something she did not do. There is not enough information on the question implying that she agree to use it.
DarkOblivion000 Also, the question doesn't explicitly state that she didn't object to having the CFA designation next to her name. If she goes up there and says, you're not allowed to put that next to my name, then she would not have violated the standard, right?
zury what did she did after noticing the missuse of the designation? what is she supossed to do? scream and run crying and yelling "NOOO im not a CFA charterholder!!! pleaseee" infront of the cheerleaders?
assiduous I agree with ROJIE on this one. Also, in the US court of law, any half way decent lawyer would easily win a case that was based only on the information presented in the question. When thought about from this real world perspective you can't help but realize how much has to be assumed in order to choose the best answer.
mpeterson Sounds like a pretty clicky group, pay your dues!
gfenney This is plain wrong - there is no indication that she was involved in any way with the printing and no information on what she did (or could have done) about it
myron @gfenney: It is correct. Who would introduce her as "Christina Boyer, CFA"? She must have given the info to the publisher. Plus, she should do whatever needed to prevent this from happening.
dbedford Maybe the question could have added "after interviewing her and presenting her with a copy of the introduction before the event, she was introduced as ..."
alphabc Christina has violated Standard VII. If one looks at the question, its says that the brochure has printed her name as Christina Boyer, CFA. Now whenever someone is being honored for volunteer or any other work, the brochures always be printed before the ceremony and the person who is being awarded, the brochure is always be given a few days before the ceremony is going to be held. So it is cleared that when the brochure was given to Christina, she must have known this fact but she was quite which is the violation of Standard VII...
JNW1980 The violation or non violation should come down to whether she saw (or should have seen) the brochure in advance and had the opportunity to correct the mistake. You would ostensibly think that she would have, however, pragmatic reality is very often different. I've been to events before where people printed material that contained inaccurate information about me and I never had a chance to correct it or even know about it in advance.
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