AIF ACCREDITED INVESTMENT
FIDUCIARY PRACTICE EXAM 200
Questions | Verified Answers & Detailed
Rationales | 2026 Edition
Exam Blueprint (Based on Fi360 AIF® Exam Blueprint):
Organize: Fiduciary Roles and Responsibilities Are Clearly Documented
and Defined (17-21 items) – 20%
Formalize: The Investment Policy is Consistent with Objectives for the
Portfolio and Risk and Return Assumptions (15-19 items) – 18%
Implement: Decisions Regarding Investments and Services are
Implemented in Accordance with the Duties of Loyalty and Care (13-17
items) – 16%
Monitor: The Portfolio is Monitored Regularly to Ensure Consistency with
Benchmarks and Overall Objectives (17-21 items) – 20%
Fiduciary Standards, Law, and Professional Practice (remaining) – 26%
Exam Format: 80 scored multiple-choice questions on the actual exam; this
practice exam contains 200 questions for comprehensive preparation.
Time limit (simulated): 3 hours (0.9 min/question)
Passing threshold: 70% (140/200)
DOMAIN 1: ORGANIZE – FIDUCIARY ROLES AND RESPONSIBILITIES
– Questions 1–42
1. What is the primary characteristic that distinguishes a fiduciary from a
non-fiduciary in an investment context?
A) The level of investment returns achieved
B) The duty to act in the best interest of another party
,C) The number of assets under management
D) The length of the investment relationship
Answer: B
Rationale: A fiduciary is someone who manages the assets of another
person and stands in a special relationship of trust, confidence, and/or legal
responsibility. The hallmark is the undivided duty of loyalty to the client .
2. An Investment Steward is best described as:
A) A professional who executes securities trades
B) Someone who manages the overall investment decision-making process
C) An advisor who provides one-time investment recommendations
D) A broker who sells investment products
Answer: B
Rationale: Investment Stewards manage the overall investment
decision-making process. They stand at the top of the fiduciary pecking
order and include trustees, committee members for endowments and
foundations, and plan sponsors .
3. Which of the following is an example of an Investment Steward?
A) A mutual fund portfolio manager
B) A trustee of a private trust
C) A stockbroker executing a trade
D) A hedge fund trader
Answer: B
Rationale: Stewards include individuals who serve as trustees, committee
members for endowments and foundations, plan sponsors, or occupy
similar positions entrusted with managing assets for others .
4. Approximately what percentage of the nation’s liquid invested assets are
managed by investment stewards?
A) Less than 50%
B) 50%
,C) More than 80%
D) 100%
Answer: C
Rationale: More than five million men and women serve as investment
stewards, responsible for managing more than 80% of the nation's liquid
invested assets .
5. An Investment Advisor is a professional who:
A) Only executes securities transactions
B) Provides comprehensive and continuous advice to stewards
C) Serves as a plan sponsor
D) Only manages hedge funds
Answer: B
Rationale: Investment Advisors are professionals who provide
comprehensive and continuous advice to Stewards .
6. Investment Managers are distinguished from Investment Advisors
primarily because:
A) Managers provide comprehensive planning advice
B) Managers make securities transaction decisions and generally act with
discretion
C) Managers serve as plan sponsors
D) Managers are not held to a fiduciary standard
Answer: B
Rationale: Investment Managers make securities transaction decisions and
generally act with discretion, whereas Advisors provide ongoing advice .
7. Approximately how many investment advisors were there as of 2011?
A) 100,000
B) 200,000
C) 317,000
, D) 500,000
Answer: C
Rationale: There were approximately 317,000 investment advisors as of
2011 .
8. Which of the following is NOT typically considered an Investment
Manager?
A) Mutual fund manager
B) Hedge fund manager
C) Wealth manager providing comprehensive planning
D) Separate account manager
Answer: C
Rationale: Wealth managers generally fall under the Investment Advisor
category, while mutual fund managers, hedge fund managers, and separate
account managers are considered Investment Managers because they make
securities transaction decisions .
9. Which of the following statements regarding fiduciary responsibility and
liability is TRUE?
A) Fiduciary responsibilities can be abdicated if delegated to an expert
B) Fiduciaries can reduce liability by identifying and filling gaps in their
practices
C) Liability is determined by investment performance
D) Fiduciary responsibility cannot be shared
Answer: B
Rationale: Fiduciary responsibilities can be shared but not abdicated.
Liability exposures exist where there are unfulfilled responsibilities.
Fiduciaries can reduce liability by identifying and filling gaps in their
practices .
10. A plan sponsor hires an investment advisor. Regarding fiduciary
liability, which statement is CORRECT?
FIDUCIARY PRACTICE EXAM 200
Questions | Verified Answers & Detailed
Rationales | 2026 Edition
Exam Blueprint (Based on Fi360 AIF® Exam Blueprint):
Organize: Fiduciary Roles and Responsibilities Are Clearly Documented
and Defined (17-21 items) – 20%
Formalize: The Investment Policy is Consistent with Objectives for the
Portfolio and Risk and Return Assumptions (15-19 items) – 18%
Implement: Decisions Regarding Investments and Services are
Implemented in Accordance with the Duties of Loyalty and Care (13-17
items) – 16%
Monitor: The Portfolio is Monitored Regularly to Ensure Consistency with
Benchmarks and Overall Objectives (17-21 items) – 20%
Fiduciary Standards, Law, and Professional Practice (remaining) – 26%
Exam Format: 80 scored multiple-choice questions on the actual exam; this
practice exam contains 200 questions for comprehensive preparation.
Time limit (simulated): 3 hours (0.9 min/question)
Passing threshold: 70% (140/200)
DOMAIN 1: ORGANIZE – FIDUCIARY ROLES AND RESPONSIBILITIES
– Questions 1–42
1. What is the primary characteristic that distinguishes a fiduciary from a
non-fiduciary in an investment context?
A) The level of investment returns achieved
B) The duty to act in the best interest of another party
,C) The number of assets under management
D) The length of the investment relationship
Answer: B
Rationale: A fiduciary is someone who manages the assets of another
person and stands in a special relationship of trust, confidence, and/or legal
responsibility. The hallmark is the undivided duty of loyalty to the client .
2. An Investment Steward is best described as:
A) A professional who executes securities trades
B) Someone who manages the overall investment decision-making process
C) An advisor who provides one-time investment recommendations
D) A broker who sells investment products
Answer: B
Rationale: Investment Stewards manage the overall investment
decision-making process. They stand at the top of the fiduciary pecking
order and include trustees, committee members for endowments and
foundations, and plan sponsors .
3. Which of the following is an example of an Investment Steward?
A) A mutual fund portfolio manager
B) A trustee of a private trust
C) A stockbroker executing a trade
D) A hedge fund trader
Answer: B
Rationale: Stewards include individuals who serve as trustees, committee
members for endowments and foundations, plan sponsors, or occupy
similar positions entrusted with managing assets for others .
4. Approximately what percentage of the nation’s liquid invested assets are
managed by investment stewards?
A) Less than 50%
B) 50%
,C) More than 80%
D) 100%
Answer: C
Rationale: More than five million men and women serve as investment
stewards, responsible for managing more than 80% of the nation's liquid
invested assets .
5. An Investment Advisor is a professional who:
A) Only executes securities transactions
B) Provides comprehensive and continuous advice to stewards
C) Serves as a plan sponsor
D) Only manages hedge funds
Answer: B
Rationale: Investment Advisors are professionals who provide
comprehensive and continuous advice to Stewards .
6. Investment Managers are distinguished from Investment Advisors
primarily because:
A) Managers provide comprehensive planning advice
B) Managers make securities transaction decisions and generally act with
discretion
C) Managers serve as plan sponsors
D) Managers are not held to a fiduciary standard
Answer: B
Rationale: Investment Managers make securities transaction decisions and
generally act with discretion, whereas Advisors provide ongoing advice .
7. Approximately how many investment advisors were there as of 2011?
A) 100,000
B) 200,000
C) 317,000
, D) 500,000
Answer: C
Rationale: There were approximately 317,000 investment advisors as of
2011 .
8. Which of the following is NOT typically considered an Investment
Manager?
A) Mutual fund manager
B) Hedge fund manager
C) Wealth manager providing comprehensive planning
D) Separate account manager
Answer: C
Rationale: Wealth managers generally fall under the Investment Advisor
category, while mutual fund managers, hedge fund managers, and separate
account managers are considered Investment Managers because they make
securities transaction decisions .
9. Which of the following statements regarding fiduciary responsibility and
liability is TRUE?
A) Fiduciary responsibilities can be abdicated if delegated to an expert
B) Fiduciaries can reduce liability by identifying and filling gaps in their
practices
C) Liability is determined by investment performance
D) Fiduciary responsibility cannot be shared
Answer: B
Rationale: Fiduciary responsibilities can be shared but not abdicated.
Liability exposures exist where there are unfulfilled responsibilities.
Fiduciaries can reduce liability by identifying and filling gaps in their
practices .
10. A plan sponsor hires an investment advisor. Regarding fiduciary
liability, which statement is CORRECT?
