CFA Level II Vignettes Ethics Standards Gold Investments MCQs Test 2

Practice CFA 2026 Level II Vignettes Ethics Standards MCQs from Gold Investments. Get instant results with Explanation.

Practice Quiz 2 for "Gold Investments" (Ethics Standards). Total 30 MCQs available, split into 3 quizzes. Test your understanding of core concepts. Mastering these concepts is essential for securing a high percentile in CFA.

General10 MCQs

1. Vignette 3: Fort Knox Advisors - Robert Anderson, CFA, is a gold investment advisor. Anderson's marketing materials state that his firm is "CFA-certified" for gold investments, implying that the firm itself holds the CFA designation. Has Anderson violated the Standards?

A. Acceptable because the firm has CFA charterholders on staffB. Acceptable because the reference is accurateC. Unacceptable because the statement is vagueD. Unacceptable because Anderson misrepresented the firm's credentials under Standard I(C)

2. Anderson recommends that a client purchase physical gold from a dealer that pays Anderson a commission, even though a lower-cost dealer is available. Which Standard has Anderson violated?

A. Standard III(A) - Loyalty, Prudence, and CareB. Standard IV(A) - Loyalty to EmployerC. Standard VI(A) - Disclosure of ConflictsD. Standard I(B) - Independence and Objectivity

3. Anderson recommends a gold-backed ETF to clients without verifying that the ETF actually holds the physical gold it claims to hold. Which Standard has Anderson violated?

A. Standard III(C) - SuitabilityB. Standard V(A) - Diligence and Reasonable BasisC. Standard I(C) - MisrepresentationD. Standard VI(A) - Disclosure of Conflicts

4. Anderson recommends a specific gold storage company to clients. Anderson owns a 25% stake in the company. He does not disclose this ownership. Which Standard has Anderson violated?

A. Standard III(A) - Loyalty, Prudence, and CareB. Standard III(C) - SuitabilityC. Standard VI(A) - Disclosure of ConflictsD. Standard IV(A) - Loyalty to Employer

5. Anderson discloses a client's gold holdings and storage location to a third party without the client's consent. Which Standard has Anderson violated?

A. Standard III(A) - Loyalty, Prudence, and CareB. Standard I(B) - Independence and ObjectivityC. Standard IV(A) - Loyalty to EmployerD. Standard III(E) - Preservation of Confidentiality

General10 MCQs

6. Vignette 4: Gold Standard Wealth - Sarah Thompson, CFA, receives a 10-ounce gold bar (worth approximately $25,000) from a gold mining company whose stock she recommends. Which Standard has Thompson most likely violated?

A. Standard III(A) - Loyalty, Prudence, and CareB. Standard I(B) - Independence and ObjectivityC. Standard III(C) - SuitabilityD. Standard VI(A) - Disclosure of Conflicts

7. Thompson recommends that a client seeking income generation invest 80% of their portfolio in physical gold, which does not generate income. Which Standard has Thompson violated?

A. Standard III(A) - Loyalty, Prudence, and CareB. Standard III(D) - Performance PresentationC. Standard III(C) - SuitabilityD. Standard V(A) - Diligence and Reasonable Basis

8. Thompson receives commissions from a gold ETF provider for recommending the ETF to clients. Thompson does not disclose these commissions. Which Standard has Thompson violated?

A. Standard VI(A) - Disclosure of ConflictsB. Standard III(A) - Loyalty, Prudence, and CareC. Standard IV(A) - Loyalty to EmployerD. Standard I(B) - Independence and Objectivity

9. Thompson recommends that a client purchase gold from a dealer that pays Thompson a higher commission, even though a lower-cost dealer is available. Which Standard has Thompson violated?

A. Standard IV(A) - Loyalty to EmployerB. Standard I(C) - MisrepresentationC. Standard V(A) - Diligence and Reasonable BasisD. Standard III(A) - Loyalty, Prudence, and Care

10. Thompson presents gold investment performance using a price index that excludes the costs of storage and insurance for physical gold. Which Standard has Thompson violated?

A. Standard I(C) - MisrepresentationB. Standard III(D) - Performance PresentationC. Standard V(B) - Communication with Clients and Prospective ClientsD. Standard VI(A) - Disclosure of Conflicts

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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 II Vignettes Ethics Standards Gold Investments MCQs Test 2

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