Online Access Free CFA-Level-I Exam Questions

What does the term "1/10, net 45" mean?

• A.a 1% discount is permitted if payment is made within 10 days.
• B.a 1% discount is permitted if payment is made within 45 days.
• C.a 10% discount is permitted if payment is made within 45 days.

Higher than expected aggregate demand will result in an inflation that is like a ______ one.

• A.demand-push.
• B.cost-push.
• C.demand-pull.

Utility curves will be very ______ for a less risk-averse investor.

• A.curved
• B.flat
• C.curvilinear

Which of the following best explains a ratio of "net sales to average net fixed assets" that exceeds the industry average? The firm:

• A.makes less than efficient use of its assets than competing firms.
• B.has a substantial amount of old plant and equipment.
• C.expanded its plant and equipment in the past few years, or uses straight line depreciation.

Nick is bullish on the Big Apple Index, which is currently at 3500. Since he has limited cash, he has decided to buy an at-the-money index option - option price is $10 per share. If the Index rises to 3508 at expiration, the option will be:

• A.at the money.
• B.out of the money.
• C.in the money.