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  1. Home
  2. CFA Certification
  3. CFA-Level-I Exam
  4. CFA.CFA-Level-I.v2024-01-19.q367 Dumps
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Question 121

Which statement is false regarding the ideal exchange rate regime?

Correct Answer: C
Ideally every country should be able to undertake fully independent monetary policy in pursuit of its own domestic economic objectives. The three conditions are not consistent.
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Question 122

Changes in the size of the federal deficit or surplus are often used to gauge whether fiscal policy is adding additional demand stimulus or imposing additional demand restraint. If we've noticed recently that the federal budget is shifting toward a deficit, we can conclude:

Correct Answer: C
Changes in the size of the deficit may arise from two different sources. They may reflect the state of the economy: during a recession the budget will shift to a deficit one even if there is no change in fiscal policy.They may reflect discretionary fiscal policy (expansionary or restrictive).
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Question 123

Which of the following is an example of a conservative accounting policy?

Correct Answer: B
Accruing reserves for potential losses is a conservative policy.
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Question 124

In January 1999 a private investor decided to allocate $2,000 to a gas and electric utilities mutual fund, $5,000 to a small company mutual fund, and $3,000 to a technology stock mutual fund. In 1999, the utilities fund had a return rate of 4.3%, the small company mutual fund had a return rate of 1.4%, and the technology stock mutual fund had a return rate of 8.5%. Find the average rate of return on this investment.

Correct Answer: A
The average return is the weighted average.
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Question 125

A distribution has a mean of 7 and a range of -100 to +50. The distribution is ________.

Correct Answer: A
The range of values is larger to the left of the mean. Hence, the distribution is left-skewed.
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