Quiz-summary
0 of 10 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
Information
Practice Questions
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading...
You must sign in or sign up to start the quiz.
You have to finish following quiz, to start this quiz:
Results
0 of 10 questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 points, (0)
Categories
- Not categorized 0%
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- Answered
- Review
-
Question 1 of 10
1. Question
Which of the following statements conflicts with the recommended procedures for compliance stated in the CFA Institute Standards of Practice Handbook?
Correct
Regardless of the presence of a mandate on the part of any regulatory agency, employers should always equate employees’ personal transactions with their clients regularly. These similarities will ensure that employees’ personal trades do not interfere with their obligation to their customers and that comparisons can be made in a confidential way to prevent disclosure
Incorrect
Regardless of the presence of a mandate on the part of any regulatory agency, employers should always equate employees’ personal transactions with their clients regularly. These similarities will ensure that employees’ personal trades do not interfere with their obligation to their customers and that comparisons can be made in a confidential way to prevent disclosure
-
Question 2 of 10
2. Question
“Firewalls” are the most widely used approach to avoid the communication of material nonpublic information within firms, what can be restricted with the use of this system?
Correct
Firewall is a network control system that tracks incoming and outgoing network traffic and determines whether to allow or block specific traffic on the basis of a specified set of security rules. Firewalls may be hardware, software, or both
Incorrect
Firewall is a network control system that tracks incoming and outgoing network traffic and determines whether to allow or block specific traffic on the basis of a specified set of security rules. Firewalls may be hardware, software, or both
-
Question 3 of 10
3. Question
Maria needs to share confidential information with someone on the other side of the wall, who should she consult with to determine whether how much information can she share and how it can be necessary?
Correct
If disclosure is mandatory, Maria can work with her enforcement officer to arrange the “wall viewing” process so that the correct information is exchanged and the dignity of the protocol is upheld. A single supervisor or enforcement officer has a clear power and duty to decide whether the information is material and whether it is adequately public to be used as the basis for investment decisions
Incorrect
If disclosure is mandatory, Maria can work with her enforcement officer to arrange the “wall viewing” process so that the correct information is exchanged and the dignity of the protocol is upheld. A single supervisor or enforcement officer has a clear power and duty to decide whether the information is material and whether it is adequately public to be used as the basis for investment decisions
-
Question 4 of 10
4. Question
Which of the following statement(s) is not a reason why market manipulation should be prohibited?
Correct
Market manipulation includes activities that may affect security prices or trade volumes for the purpose of misleading persons or institutions that rely on market knowledge. This harms the interests of all investors by undermining the orderly running of capital markets and reducing their trust
Incorrect
Market manipulation includes activities that may affect security prices or trade volumes for the purpose of misleading persons or institutions that rely on market knowledge. This harms the interests of all investors by undermining the orderly running of capital markets and reducing their trust
-
Question 5 of 10
5. Question
Samuel purposely increased his earnings projections in order to try to fuel a quick gain in Phil’s stock price but it only resulted in him violating Standard II and III in which discusses fair dealing. What should he avoid in his report next time to make it more acceptable?
Correct
The Fair Dealing from Standard III(B) states that CFA members shall take action with all clients in a manner that is fair, rational, and impartial. This can be ensured by presenting the advice to both the firm and the consumers at the same time
Incorrect
The Fair Dealing from Standard III(B) states that CFA members shall take action with all clients in a manner that is fair, rational, and impartial. This can be ensured by presenting the advice to both the firm and the consumers at the same time
-
Question 6 of 10
6. Question
There are a few types of markets in the industry. Some examples are a continuous market used by US investors, while traders who publicly post their orders and transaction price is called an auction market. What kind of market does the U.S. NASDAQ most likely have?
Correct
Both the broker and the order-driven markets refer to the trading of financial markets. The only distinction between these two exchange mechanisms is what is currently present in terms of orders and bids and inquire for exchanged security rates. The order-driven market shows and demands all possible bids, while the quota-driven market relies exclusively on bids and requests from market makers and other designated parties
Incorrect
Both the broker and the order-driven markets refer to the trading of financial markets. The only distinction between these two exchange mechanisms is what is currently present in terms of orders and bids and inquire for exchanged security rates. The order-driven market shows and demands all possible bids, while the quota-driven market relies exclusively on bids and requests from market makers and other designated parties
-
Question 7 of 10
7. Question
Electronic crossing networks are systems that anonymously match the buy and sell orders of a pool of participants. Which of the following is not an advantage of this ECN system?
Correct
Electronic cross-border networks allow investors to exchange beyond conventional business hours, offering a process for those who are either unable to participate directly during regular market periods or who choose the convenience provided by greater availability. It also prevents bigger spreads that are typical when using a conventional broker and offers smaller total fees and costs
Incorrect
Electronic cross-border networks allow investors to exchange beyond conventional business hours, offering a process for those who are either unable to participate directly during regular market periods or who choose the convenience provided by greater availability. It also prevents bigger spreads that are typical when using a conventional broker and offers smaller total fees and costs
-
Question 8 of 10
8. Question
Engaging in a large trade will result in a significant market impact. What technique can a Manager execute to try to minimize the cost?
Correct
This strategy may mitigate costs, but one must be sure to evaluate the price that would’ve been received on the market and not privilege one customer at the expense of another. This strategy has mostly been implemented by asset management firms that are large enough for it to focus on passive strategies such as index funds
Incorrect
This strategy may mitigate costs, but one must be sure to evaluate the price that would’ve been received on the market and not privilege one customer at the expense of another. This strategy has mostly been implemented by asset management firms that are large enough for it to focus on passive strategies such as index funds
-
Question 9 of 10
9. Question
A trading technique that can result in low execution costs and anonymity but can take a very long time before the order is entered on the crossing network and trade is executed. Which of the following strategy best matches these outcomes?
Correct
In comparison, orders also have to be moved to another trading site. Clearly, the pace of execution of this trading strategy is the drawback that can be put at the price of opportunity costs
Incorrect
In comparison, orders also have to be moved to another trading site. Clearly, the pace of execution of this trading strategy is the drawback that can be put at the price of opportunity costs
-
Question 10 of 10
10. Question
Which of the following statements about stock markets are not true?
Correct
Most of the time, as people ask about the stock markets, they talk of the New York Stock Exchange (NYSE) or NASDAQ because they are the largest stock exchanges in the world. But, in fact, there are more than 60 exchanges around the world
Incorrect
Most of the time, as people ask about the stock markets, they talk of the New York Stock Exchange (NYSE) or NASDAQ because they are the largest stock exchanges in the world. But, in fact, there are more than 60 exchanges around the world