CFA Practice Question

There are 361 practice questions for this study session.

CFA Practice Question

During a presentation to prospective clients, Sumanta Mitra makes the following two statements: "CFAs represent the elite of all investment professionals and are most qualified to manage your money" and "CFA charterholders obtain their charters after passing three levels of exams based on a comprehensive and rigorous study program."

Which of the above statements violates Standard VII (B) Reference to CFA Institute, the CFA Designation, and the CFA Program?
A. Both
B. "CFAs represent the elite of all investment professionals and are most qualified to manage your money."
C. "CFA candidates obtain their charters after passing three levels of exams based on a comprehensive and rigorous study program."
Explanation: It is not appropriate to refer to the CFA as "elite," "most qualified," etc. The second statement, however, could be considered factual.

User Contributed Comments 11

User Comment
Leese What's this "close to being factual"?? If I sit and pass all 3 levels of the CFA I do NOT become a CFA chartholder unless I ALSO have the required number of years of work experience. In my opinion, both statements are incorrect.
Ocheret Besides, CFA charterholders are obliged to pay annual fees to keep the charter. But first of all, they have to pass 3 levels. It is the pre-requisite.
chris76 yeah, think its an oversite as for the average person the experience comes before the exams. I caught it as I'm in the the unusual position of sitting first...
ybavly Leese: they "can" obtain their charters does not mean they "will". That is a correct statement.
mary11 haha i have been "close"on a lot of answer too - and the bottom line is its still wrong =)
robertucla You can't claim being a CFA after passing all three exams. You have to 1. pass three exams, 2. pay your $$$, 3. Complete required amount work experience.
rbernier09 Agree with Leese. Passing the exams doesn't give you the charter, there are more requirements.
SMcalister I also wouldn't dare say that the CFA exams are comprehensive. There is plenty of things in the world of finance that I do not know, I would hate to misrepresent my abilities. Just leave it at "3 rigorous exams"
Rodwell Well, it is still true that CFA candidates obtain the charter after passing 3 levels of exam... The statement does not exclude other requirements but rather puts across the timing of events envolved in receiving the charter.
Inaganti6 I disagree with AN on this. If I see this question on the exam I'm going for A.
yesitan A is a more appropriate answe
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