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All of the following are components of the Code of Ethics EXCEPT:

A) using reasonable care and exercising independent professional judgment.

B) demonstrating diligence, independence, and thoroughness when preparing investment reports.

C) striving to maintain and improve their competence and the competence of others in the profession.

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Demonstrating diligence, independence, and thoroughness when preparing investment reports is found in the Standards of Professional Conduct.

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The Code of Ethics does NOT explicitly say that a CFA Institute member shall do which of the following?

A) Exercise independent professional judgment.

B) Act with integrity.

C) Actively lobby for new laws to protect the public.

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The Code of Ethics says nothing about a CFA Institute member lobbying for new laws. In fact, legal issues are not a part of the Code. The Standards of Professional Conduct say that the member shall obey laws.

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John Elliot, CFA, says that in issues of ethics he always puts the clients first according to the guidelines in the Code of Ethics. In doing so he is:

A) correct.

B) not correct, because no such ordering or priority is given in the Code.

C) not correct, because his first duty is to the public.

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Component one mentions duties to the public, clients, prospects, employers, employees, and fellow members. No ordering of priorities is given.

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Which of the following is a component of the Code of Ethics? CFA Institute members shall:

A) use reasonable care and exercise independent professional judgment.

B) not knowingly participate or assist in any violation of laws, rules, or regulations.

C) use particular care in determining applicable fiduciary duty.

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Using reasonable care and exercising independent professional judgment is one of the components of the Code of Ethics, whereas the other statements are part of the Standards of Professional Conduct.

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The CFA Institute Code of Ethics least likely requires a Member or Candidate to:

A) Strive to maintain and improve the competence of others in the profession.

B) Understand and comply with all applicable laws, rules, and regulations.

C) Practice and encourage others to practice in a professional and ethical manner that will reflect credit on members and their profession.

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Understanding and complying with all applicable laws, rules, and regulations is required by Standard I(A) – Knowledge of the Law. The other choices are included in the Code of Ethics.

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According to the Code of Ethics, a member reflects credit on the profession when a member:

A) consults with other members on a regular basis.

B) practices in a professional and ethical manner.

C) places the clients first.

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Component four of the Code says that a member shall “Practice and encourage others to practice in a professional and ethical manner that will reflect credit on members and the profession.” Neither of the other choices are implied by the Code.

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Which of the following is least likely a component of the Code of Ethics? In dealing with the public, clients, prospects, employers, employees, and fellow members, CFA Institute members shall act with:

A) integrity.

B) humility.

C) respect.

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Although acting with humility may be desirable, CFA Institute members are not required to do so. However, they should act in a manner that reflects credit on themselves and their profession.

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According to the CFA Institute Code of Ethics, CFA Institute Members and Candidates must do all of the following EXCEPT:

A) not knowingly violate the securities acts and laws.

B) exercise independent judgment.

C) act with integrity and dignity.

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Not knowingly violating the law is in the Standards of Professional Conduct, but is not in the Code of Ethics.

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Which of the following is a component of the Code of Ethics?

A) Members and candidates shall not engage in any conduct or commit any act that compromises the integrity of the CFA designation or the integrity or validity of the examinations leading to the award of the right to use the CFA designation.

B) Members shall not copy or use, in substantially the same form as the original, material prepared by another without acknowledging and identifying the name of the author, publisher, or source of such material. Members may use, without acknowledgment, factual information published by recognized financial and statistical reporting services or similar sources.

C) Practice and encourage others to practice in a professional and ethical manner that will reflect credit on members and their profession.

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This is a component of the Code of Ethics. Others pertain to the Standards of Pra

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The Code of Ethics does NOT explicitly say that a CFA Institute member shall do which of the following?

A) Reflect credit on the profession.

B) Actively lobby for new laws to protect the public.

C) Act with integrity.

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The Code of Ethics says nothing about a CFA Institute member lobbying for new laws. In fact, legal issues are not a part of the Code. The Standards of Professional Conduct say that the member shall obey laws.