Free CFA CFA-Level-I Exam Dumps Questions & Answers

To maximize profits, a perfectly competitive firm should do all of the following except:
I). produce until economic profits are maximized.
II). produce until marginal cost equals price.
III). produce until marginal revenue equals marginal cost.
IV). produce until per unit profits are maximized.

• A.IV only.
• B.I and IV.
• C.II and III.

Rachael Hirshliefer, CFA manages accounts of various clients from differing demographics and risk tolerances. Her firm purchases third party research and she follows up the recommendations with her own analysis. After she reaches a decision to buy or sell a particular asset, she does the same trades for all her clients. Has Hirshliefer likely violated the Standards?

• A.No.
• B.Yes, Suitability.
• C.Yes, Priority of Transactions.

Which of the following will shift the aggregate demand curve for the U.S. to the right?

• A.A drop in the price level.
• B.A decrease in the exchange rate for the euro.
• C.An economic boom in Europe.

Credit spread risk can be described as the risk that the price of a bond will

• A.rise due to a decrease in the credit spread.
• B.decline due to a decrease in the credit spread.
• C.decline due to an increase in the credit spread.

Business cycles are generally considered in:

• A.both the short-run and long-run frameworks.
• B.the short-run framework.
• C.the long-run framework.