CFA Level I Mock Exam B Questions with Correct Verified Answers Latest Update (2024/2025) Guaranteed Pass
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Course
CFA - Chartered Financial Analyst
Institution
CFA - Chartered Financial Analyst
CFA Level I Mock Exam B Questions with Correct Verified Answers Latest Update (2024/2025) Guaranteed Pass
CFA Level I Mock Exam B Questions with Correct Verified Answers Latest Update (2024/2025) Guaranteed Pass
CFA Level I Mock Exam B Questions with Correct Verified Answers Latest Update (2024...
CFA Level I Mock Exam B
Questions with Correct Verified
Answers Latest Update
(2024/2025) Guaranteed Pass
An investor deposits £2,000 into an account that pays 6% per annum
compounded continuously. The value of the account at the end of four
years is closest to: - ANS ✓The future value (FV) of a given lump sum,
calculated using continuous compounding, is: FV = PVerN = 2,000 × e0.06 ×
4 = £2,542.49 ~ £2,542.
To project the assets and liabilities of a pension plan using a number
of different assumptions, the most appropriate method to employ is: -
ANS ✓Monte Carlo simulation is better suited to hypothetical "what if"
analysis than historical simulation. To model a pension plan's status under
a number of different hypothetical assumptions affecting the assets and
liabilities, Monte Carlo simulation is the most appropriate method B is
incorrect because Monte Carlo simulation is not an analytical method that
can provide great insights into cause and effect relationships. It is a
complement to analytical methods.
A positive movement in a lagging indicator would least likely be used
to: - ANS ✓identify an expected future economic upturn
If the scale of a single producer is small relative to the demand for an
undifferentiated good, the market structure of the producer is best
described as being: - ANS ✓perfect competition
CFA Level I Mock Exam B:
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CFA
gdp - ANS ✓Consumer spending on goods and services + Business gross
fixed investment + Change in inventories + Government spending on goods
and services + Government gross fixed investment + Exports − Imports +
Statistical discrepancy
Spot Rate One-Year Forward Rate
USD/EUR 1.2952 1.3001 - ANS ✓The euro is trading at a forward
premium of 49 points
According to the concept of money neutrality, over the long term, the
money supply is *least likely* to affect: - ANS ✓real rate of interest
(inflation and inflation expectations)
Which of the following events would most likely have a positive
impact on the GDP of Switzerland and the gross national product
(GNP) of France? - ANS ✓GDP measures the market value of all final goods
and services produced by factors of production (such as labor and capital)
located within a country, therefore Swiss GDP includes the accounting
services provided within Switzerland. GNP measures the market value of
all final goods and services produced by factors of production supplied by
residents of a country, regardless of whether such production takes place
within the country or outside of the country. Therefore, GNP includes the
accounting services produced by a French citizen abroad.
An accounting document that records transactions in the order in
which they occur is best described as a: - ANS ✓general journal
Which of the following statements best describes the role of the
International Organization of Securities Commissions (IOSCO)? The
CFA Level I Mock Exam B:
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CFA
IOSCO - ANS ✓assists in attaining the goal of cross-border cooperation in
combating violations of securities laws
Diluted EPS - ANS ✓
Under IFRS, which of the following balance sheet presentation formats
is most acceptable? Classifying assets and liabilities: - ANS ✓in liquidity
order
Previously, a manufacturer of high-quality industrial electrical
generators only sold its units to customers, but it has just introduced
a leasing program. The generators have expected useful lives of about
25 years, and the company anticipates that the leases will have a term
of 20 years or more. The company reports under International
Financial Reporting Standards. Which of the following statements
about the first year of the new leasing program is most accurate? -
ANS ✓If the lease is classified as a finance lease, it will decrease the
company's liquidity position compared with when the company was only
selling its generators.
The most appropriate treatment for intangible assets with indefinite
useful lives is to: - ANS ✓capitalize with no amortization
Working capital $60 million
Non-current assets $235 million
Equity $170 million
Current ratio 1.75
The company's financial leverage is closest to: - ANS ✓First determine
current assets, where CA = Current assets, CL = Current liabilities, WC =
Working capital, and CR = Current ratio
CFA Level I Mock Exam B:
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