Observing the CFA® Level 1 Standards

CFA® Level 1 Standards

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Question

Parts of the standards that are ________ must be observed.

Answers

Explanations

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A. B. C. D. E.

C

Some aspects of the Performance Presentation Standards are mandatory and must be observed, while other aspects are recommended.

In the context of the CFA® (Chartered Financial Analyst) Level 1 exam, the question asks about the parts of the standards that must be observed. The standards referred to here are likely the ethical and professional standards that CFA charterholders are expected to adhere to.

Let's go through each answer choice and determine which one accurately describes the parts of the standards that must be observed:

A. Recommended: When something is recommended, it suggests that it is advisable or desirable but not necessarily obligatory. Therefore, if the parts of the standards were merely recommended, they would not have to be observed. This answer choice does not accurately describe the requirement for adherence to the standards.

B. Suggested: Similar to "recommended," something that is suggested implies that it is put forward for consideration or thought but is not obligatory. Therefore, if the parts of the standards were merely suggested, they would not have to be observed. This answer choice also does not accurately describe the requirement for adherence to the standards.

C. Mandatory: When something is mandatory, it means it is required or obligatory. If the parts of the standards are mandatory, then they must be observed. This answer choice accurately describes the requirement for adherence to the standards and is the correct answer in this context.

D. Restraining: "Restraining" implies the act of holding back or limiting something. This term does not accurately describe the requirement for observing the parts of the standards, as it suggests a hindrance rather than an obligation.

E. Inhibiting: "Inhibiting" refers to the act of hindering or limiting something. Similar to "restraining," this term does not accurately describe the requirement for observing the parts of the standards. It suggests a negative impact or limitation rather than an obligation.

To summarize, the correct answer is C. Mandatory. The parts of the standards that must be observed are considered mandatory, meaning they are required or obligatory.