CFA Level I Ethics Professional Standards MCQs Test 3

Practice CFA 2026 Level I Ethics MCQs from Professional Standards. Get instant results with Explanation.

Practice Quiz 3 for "Professional Standards" (Ethics). Total 32 MCQs available, split into 4 quizzes. Challenge yourself with advanced application-based questions. Mastering these concepts is essential for securing a high percentile in CFA.

General10 MCQs

1. What does Standard VI(C) Referral Fees require?

A. Disclose to employer, clients, and prospective clients any compensation received from or paid to others for the recommendation of products or services.B. Only disclose to clients, not to employers.C. Only disclose referral fees that exceed a certain amount.D. Referral fees do not need to be disclosed.

2. What does Standard VII(A) Conduct as Participants in CFA Institute Programs address?

A. Only applies to cheating on the CFA exam.B. Prohibits any conduct that compromises the integrity or validity of CFA Institute programs.C. Only applies to CFA charterholders, not candidates.D. Only applies to conduct that occurs during the exam.

3. What does Standard VII(B) Reference to CFA Institute, the CFA Designation, and the CFA Program address?

A. Allows members to make any claims about the CFA designation.B. Only applies to charterholders, not candidates.C. Prohibits false or misleading statements about the CFA designation or program.D. Only applies to statements made in advertising.

4. What are the seven Standards of Professional Conduct?

A. Professionalism, Duties to Clients, and Duties to Employers only.B. Professionalism, Integrity of Capital Markets, and Duties to Clients only.C. Professionalism, Duties to Clients, Duties to Employers, and Investment Analysis only.D. Professionalism, Integrity of Capital Markets, Duties to Clients, Duties to Employers, Investment Analysis, Conflicts of Interest, and Responsibilities as a CFA Institute Member or CFA Candidate.

5. What does Standard I(B) Independence and Objectivity require?

A. Use reasonable care and judgment to achieve and maintain independence and objectivity.B. Only required to maintain independence when dealing with clients.C. Allows members to accept gifts that could impair objectivity as long as they are disclosed.D. Only applies to research analysts, not to portfolio managers.

General10 MCQs

6. What does Standard I(C) Misrepresentation prohibit?

A. Only prohibits misrepresentations that are intentional.B. Prohibits knowingly making any misrepresentations relating to professional activities.C. Allows misrepresentations if they are not material.D. Only prohibits misrepresentations made to clients.

7. What does Standard I(E) Competence require?

A. Only requires competence when dealing with clients.B. Maintaining competence is optional for members.C. Requires maintaining and improving professional competence and striving to improve the competence of others.D. Only requires competence for candidates, not for charterholders.

8. What does Standard II(A) Material Nonpublic Information prohibit?

A. Allows members to act on material nonpublic information if they do not disclose it.B. Allows members to share material nonpublic information with colleagues.C. Allows members to act on material nonpublic information if it is not illegal.D. Prohibits members and candidates from acting or causing others to act on material nonpublic information.

9. What does Standard II(B) Market Manipulation prohibit?

A. Prohibits engaging in practices that distort prices or artificially inflate trading volume with intent to mislead.B. Allows market manipulation if it is not illegal.C. Prohibits market manipulation only if it harms clients.D. Allows market manipulation if it benefits the firm.

10. What does Standard III(C) Suitability require?

A. Only requires suitability for clients with large portfolios.B. Requires making investment recommendations or actions that are suitable for the client's financial situation, objectives, and risk tolerance.C. Allows members to recommend products that are not suitable if they are disclosed.D. Only requires suitability for institutional clients, not for retail clients.

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Conducting Body: CFA Institute

Frequency: 4 times a year (February, May, August, November) | Time: 70 Minutes

Negative Marking: No

⚡ Test Pattern (Total: 90 MCQs):

Subject breakdown not available.

Merit Formula: -

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CFA Level I Ethics Professional Standards MCQs Test 3

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