Free CFA — Chartered Financial Analyst Exam Questions and Answers
CFA — Chartered Financial Analyst is one of the AAFM India tests covered here. AAFM India is a private company in New Delhi that markets a family of chartered finance designations — CWM, CTEP, AFA, Chartered Economist, Chartered Portfolio Manager and others — under licence from the Global Academy of Finance and Management, which acquired the original American Academy of Financial Management's intellectual property in January 2015. Its own about page states that it operates as an education and certification body and does not act as a regulator or licensing authority. CWM is the flagship: two levels, 85 questions in 180 minutes each, 50% to pass, no negative marking.
The first 10 questions on this page are free to read, answers included — no account and no card. A plan opens the rest of the bank, the full timed practice test and your weak-topic reporting.
Last updated: September 15, 2026
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- First 10, with answers
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- 130 mins · 70%
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Question #1
What is the primary objective of financial reporting?
Please select an optionIncorrectCorrect answer: B
The primary objective is to provide relevant financial information for decision-making.
Was this answer correct?Question #2
Which of the following is a characteristic of a perfectly competitive market?
Please select an optionIncorrectCorrect answer: A
In a perfectly competitive market, there are no barriers to entry, allowing free market access.
Was this answer correct?Question #3
What does the CAPM model calculate?
Please select an optionIncorrectCorrect answer: D
The CAPM model is used to calculate the required return on an asset based on its systematic risk.
Was this answer correct?Question #4
What is the main purpose of diversification in investing?
Please select an optionIncorrectCorrect answer: D
Diversification aims to reduce risk by spreading investments across various assets.
Was this answer correct?Question #5
In terms of risk, what distinguishes common stock from bonds?
Please select an optionIncorrectCorrect answer: D
Common stock is riskier than bonds because of the potential for default on bond payments.
Was this answer correct?Question #6
What does the term "liquidity" refer to in finance?
Please select an optionIncorrectCorrect answer: B
Liquidity refers to the availability of cash or assets that can quickly be converted to cash.
Was this answer correct?Question #7
An increase in interest rates is likely to impact which of the following?
Please select an optionIncorrectCorrect answer: D
Generally, when interest rates rise, bond prices fall due to the inverse relationship between them.
Was this answer correct?Question #8
Which of the following best describes a bear market?
Please select an optionIncorrectCorrect answer: A
A bear market is characterized by a decline in stock prices, typically defined as a drop of 20% or more.
Was this answer correct?Question #9
What is the effect of rising interest rates on the value of existing bonds?
Please select an optionIncorrectCorrect answer: C
Rising interest rates generally lead to a decrease in the value of existing bonds.
Was this answer correct?Question #10
What is a key feature of a zero-coupon bond?
Please select an optionIncorrectCorrect answer: A
A zero-coupon bond is sold at a discount and does not pay periodic interest.
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Other AAFM India certifications
- CRA — Chartered Risk Analyst (opens in a new tab)
- CFP — Certified Financial Planner (opens in a new tab)
- CPFA — Certified Private Fund Advisor (opens in a new tab)
- CAFP — Certified Alternative Fund Practitioner (opens in a new tab)
- MFP — Master Financial Planner (opens in a new tab)
- CRBA — Certified Risk and Business Analyst (opens in a new tab)
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FAQ
Learn More: https://www.aafmindia.co.in/best-finance-courses-in-india.aspx
- Q1: What is the CFA — Chartered Financial Analyst exam?
- A: CFA — Chartered Financial Analyst is a AAFM India certification exam. Judging by the questions in our bank, it concentrates on market, investing, stock, investment and finance.
- Q2: What topics does the CFA — Chartered Financial Analyst exam cover?
- A: Questions in our CFA — Chartered Financial Analyst bank cluster around market, investing, stock, investment, finance, bonds, investor and interest. Working through the full set is the quickest way to find which of these you are weakest on.
- Q3: How should I prepare for CFA — Chartered Financial Analyst?
- A: Work through the CFA — Chartered Financial Analyst practice questions here, checking your answer on each one, then sit the practice test to rehearse the exam under timed conditions before the real thing.
- Q4: Are these real CFA — Chartered Financial Analyst exam questions?
- A: They are drawn from officially released past questions and from community members who have sat CFA — Chartered Financial Analyst. Answers are verified and updated weekly.
- Q5: Where do I register for the CFA — Chartered Financial Analyst exam?
- A: Register through AAFM India directly at https://www.aafmindia.co.in/best-finance-courses-in-india.aspx. Exampractice is not affiliated with AAFM India and does not administer the exam.
- Q6: Is there a free CFA — Chartered Financial Analyst sample?
- A: Yes. Every CFA — Chartered Financial Analyst page shows a free sample of real questions. Upgrading opens the full bank and the practice test.
- Q7: What are AAFM India Certification Exams?
- A: AAFM (American Academy of Financial Management) India Certification Exams are professional examinations that validate expertise in financial planning, wealth management, risk management, and related financial disciplines.
- Q8: Why should I pursue AAFM India Certification?
- A: AAFM India Certification enhances your professional credibility, showcasing your skills and knowledge in financial management, which can lead to better job opportunities, higher salaries, and career advancement.
- Q9: What are the benefits of AAFM India Certification?
- A: Benefits include recognition as a certified financial expert, improved job performance, access to exclusive resources, and the ability to stay current with the latest financial strategies and practices.
- Q10: Who should take AAFM India Certification Exams?
- A: Financial professionals, wealth managers, risk managers, investment advisors, and anyone involved in financial planning or management should consider these certifications to validate their expertise and advance their careers.
- Q11: What types of AAFM India Certification Exams are available?
- A: AAFM India offers various certification paths such as Chartered Wealth Manager (CWM), Chartered Financial Goal Planner (CFGP), and Chartered Risk Analyst (CRA), each tailored to specific roles and expertise levels.
- Q12: How do I prepare for AAFM India Certification Exams?
- A: Preparation can include official AAFM India training programs, study guides, practice exams, and hands-on experience in financial management and planning.
- Q13: Where can I take AAFM India Certification Exams?
- A: AAFM India Certification Exams can be taken at authorized testing centers across India, providing flexibility to fit your schedule and location.
- Q14: How do AAFM India Certifications impact my career?
- A: AAFM India Certifications significantly boost your career by demonstrating your expertise to employers, making you a more competitive candidate for advanced roles and promotions in the financial industry.
- Q15: Are there any prerequisites for AAFM India Certification Exams?
- A: Some exams may have prerequisites, such as foundational knowledge or prior certifications. Check the specific requirements for each certification path on the AAFM India website.
- Q16: How often do I need to recertify for AAFM India Certifications?
- A: AAFM India Certifications typically require recertification every two to three years to ensure that certified professionals stay updated with the latest financial trends and practices.