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CMT Level 2 - Sample Exam Questions & Answers
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CMT Level 2 - Sample Exam Questions & Answers
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CMT Level 2 - Sample Exam Questions &Answers
The MTA Code of Ethics applies to:
a. Members only
b. Affiliates only
c. CMT candidates
d. All of the above - ANSWER-The MTA Code of Ethics applies to:
d. All of the above
An MTA Member or Affiliate using the MTA mailing list to send _____________ would not be in
violation of the Code of Ethics:
a. Research reports
b. A free membership to a club
c. Charting discount coupons
d. CMT Newsletter - ANSWER-An MTA Member or Affiliate using the MTA mailing list to send ____________would not be in
violation of the Code of Ethics:
d. CMT Newslette
Which of the following would not be a violation of the Code of Ethics in a published research report or
statement?
a. Estimates which are subject to change
b. Inaccurate information
c. Statements inconsistent with the accumulated knowledge of technical analysis
d. Statements which disparage the work of other analysts - ANSWER-Which of the following would NOT be a violation of the code of ethics in a published research report or
statement? a. Estimates which are subject to change
What is the position of the MTA Code of Ethics as it pertains to trading on inside information?
a. Under no circumstances is insider trading allowed
b. The Code of Ethics takes no position on insider trading
c. Insider trading which violates the laws/regulations of any governmental or regulatory agency is
prohibited
d. Inside information may be disseminated but not acted upon - ANSWER-What is the position of the MTA Code of Ethics as it pertains to trading on inside information?
c. Insider trading which violates the laws/regulations of any governmental or regulatory agency is
prohibited
What is the MTA's position with respect to knowledge of client and employer information:
a. Only knowledge of current clients and employers must be kept in confidence
b. The MTA Code of Ethics does not apply to confidentiality of unlawful client or employer activity
c. The MTA Code of Ethics is silent on client and employer confidentiality so members must refer
to laws/rules promulgated by regulatory authorities
d. All information pertaining to any lawful activity of past or present clients or employers must be
kept in confidence - ANSWER-What is the MTA's position with respect to knowledge of client and employer information:
d. All information pertaining to any lawful activity of past or present clients or employers must be kept in
confidence
According to the MTA Code of Ethics, what prohibitions MUST be adhered to after making a buy or sell
recommendation?
a. Allow adequate time for clients to act on recommendations before the analyst acts on the
recommendation
b. Analysts must give clients and their employer adequate time to trade, but the analyst's family
members are under no such restriction c. Analysts may effect trades for their own account even if their employer has not had time to act
on their recommendation
d. Insider trading activity is the subject of SEC regulations, therefore the MTA Code of Ethics is
silent on this issue - ANSWER-According to the MTA Code of Ethics, what prohibitions MUST be adhered to after making a buy or sell
recommendation?
a. Allow adequate time for clients to act on recommendations before the analyst acts on the
recommendation
What position does the MTA take on plagiarism?
a. Analysts can never copy other analysts work
b. Other analysts work can be copied with permission in advance
c. If the author of the original work is deceased, this work cannot be copied since permission
cannot be obtained
d. Research reports which are not direct copies but use substantially the same language as other
analysts work would be permissible - ANSWER-What position does the MTA take on plagiarism?
b. Other analysts work can be copied with permission in advance
What steps must analysts take in introducing new methods of technical analysis under the MTA Code
of Ethics?
a. All new techniques must be fully documented even if proprietary methods must be disclosed to
do so
b. New procedures must be documented as to procedure and rationale
c. New procedures must be supported by adequate back testing confirmed by at least technician
d. New methods need not be consistent with the accumulated knowledge of the field of technical
analysis - ANSWER-What steps MUST analysts take in introducing new methods of technical analysis under the MTA Code of
Ethics?
b. New procedures must be documented as to procedure and rationale Which of the following must every MTA Member and Affiliate comply with?
a. Rules promulgated by the MTA Board of Governors
b. MTA Constitution
c. MTA By-laws
d. All of the above - ANSWER-Which of the following MUST every MTA Member and Affiliate comply with?
d. All of the above
Which of the following MUST be adhered to in published or written analytical reports?
a. Statements must be consistent with available evidence
b. Statements must be consistent with the accumulated knowledge of technical analysis
c. Statements may not indefensibly disparage the work of other analysts
d. All of the above - ANSWER-Which of the following MUST be adhered to in published or written analytical reports?
d. All of the above
Which of the following would BEST improve the profitability of a trend-based trading system?
a. Use of additional trend periods
b. Increase the delay in taking action after a trade signal is given
c. Utilize support and resistance lines
d. Utilize candlestick charts instead of bar charts - ANSWER-Which of the following would BEST improve the profitability of a trend-based trading system?
b. Increase the delay in taking action after a trade signal is given
Which of the following would NOT be true in designing a trading system utilizing bands?
a. Buy when prices penetrate the upper band
b. Close out longs when prices reverse and go below the center of the band
c. Close out shorts when prices reverse and go below the center of the band
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