Free CFA® Level 1 Ethics practice quiz.
Ten scenario questions covering every Standard, with a worked explanation and Standard citation on each answer. Free, no email required. Find out where your Ethics score actually stands before it counts.
- Question 1 of 10 · Standard I(A) Knowledge of the Law
Mira, a CFA candidate, works in a jurisdiction where a local rule permits soft-dollar practices that the CFA Institute Standards prohibit. Which action is MOST consistent with Standard I(A)?
- Question 2 of 10 · Standard I(B) Independence and Objectivity
An analyst receives a fully paid, first-class trip and lodging from an issuer to tour a mine site. No comparable commercial flight is available. What is the MOST appropriate action?
- Question 3 of 10 · Standard II(A) Material Nonpublic Information
Overhearing an executive at a restaurant, an analyst learns a public company will miss earnings. The analyst is planning to short the stock. Under the mosaic theory, this trade is:
- Question 4 of 10 · Standard II(B) Market Manipulation
A trader routinely places large buy orders shortly before market close and cancels them seconds later to move the closing price of a thinly traded ETF. This is BEST described as:
- Question 5 of 10 · Standard III(B) Fair Dealing
A firm changes its recommendation on a stock from Buy to Sell. The firm plans to email the change to institutional clients first, then to retail clients 24 hours later. Under Standard III(B), this is:
- Question 6 of 10 · Standard III(C) Suitability
A retiree with a stated 'capital preservation' objective and low risk tolerance asks her adviser to put 80% of her portfolio into a single small-cap biotech she read about. The adviser should MOST likely:
- Question 7 of 10 · Standard IV(A) Loyalty to Employer
Before resigning to start a competing firm, an employee copies her employer's client list and models to a personal drive. She plans to use them only after her last day. This is:
- Question 8 of 10 · Standard V(A) Diligence and Reasonable Basis
An analyst issues a Buy recommendation based solely on a third-party research report she did not independently verify. Under Standard V(A), she must:
- Question 9 of 10 · Standard VI(A) Disclosure of Conflicts
A portfolio manager sits on the board of a small public company he sometimes recommends to clients. The BEST action under Standard VI(A) is to:
- Question 10 of 10 · Standard VII(B) Reference to CFA Institute, the CFA Designation, and the CFA Program
On his LinkedIn profile, a Level 2 candidate lists himself as 'CFA Level 2, 2025 pass.' Under Standard VII(B), this is: