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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 136

Craig Pol is an investment analyst. Information was handed to Craig by his client in order to investigate an investment option for future expansion plans for a company. A financier finds out about this information and asks Craig to send him a copy of the information. According to the Standards of
Professional conduct, what should Craig do?

Correct Answer: A
Standard IV(B.5): Preservation of Confidentiality Information handed to a member to investigate an investment option for e.g. future expansion plans etc. should clearly not be given to external persons to view, unless the prior permission of the client is obtained.
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Question 137

Use the following data from Delta's common size financial statement to answer the question:
Earnings after taxes = 18% Equity = 40% Current assets = 60% Current liabilities = 30% Sales = $300
Total assets = $1,400. What is Delta's total-debt-to-equity ratio?

Correct Answer: B
If equity = 40%, debt must = 60%, thus 60/40 = 1.5
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Question 138

Taxable temporary differences result in a deferred tax ______ when the tax base of an asset is
_ ____ than its carrying amount.

Correct Answer: C
Or when the tax base of the liability exceeds its carrying amount.
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Question 139

If the financial markets are liquid and the costs of trading are low, the financial system:

Correct Answer: B
The costs include commissions, bid-ask spreads, and order price impacts. Transaction costs are lower in transparent markets than in opaque markets because traders can more easily determine market value and more easily manage their trading in transparent markets.
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Question 140

If people expect the nominal interest rate will be higher in the near future, the aggregate demand will:

Correct Answer: C
It depends on the expected inflation rate. If it is higher than the expected increase of nominal interest rate, the real interest rate is thus expected to go down, and people will spend more. On the other hand the aggregate demand will decrease. If the two rate equal to each other, the aggregate demand will stay unchanged.
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