QUESTIONS 1 THROUGH 18 RELATE TO ETHICAL AND PROFESSIONAL STANDARDS.
7.
Christina Ng, a Level I CFA candidate, defaulted on a bank loan she obtained to pay for her
Master’s degree tuition when her wedding cost more than expected. A micro finance loan
company lent her money to pay off the tuition loan in full, including penalties and interest. The
micro finance loan company even extended further credit to pay for her parents’ outstanding
medical bills. Unfortunately, her parents’ health problems escalated to the point where Ng had
to take extensive time away from work to deal with the issues. She was subsequently fired and
consequently defaulted on the second loan. Because she was no longer employed, Ng decided
to file for personal bankruptcy. Do the loan defaults leading up to Ng’s bankruptcy most likely
violate Standard I (D) Misconduct?
A. No
B. Yes, with regard to the first loan default
C. Yes, with regard to the second loan default