What is the purpose of the CFA exam?

The primary purpose of the CFA exam is to assess the knowledge and skills of investment professionals. The CFA (Chartered Financial Analyst) designation is recognized globally and signifies that the holder has a firm foundation in investment analysis, portfolio management, and ethical standards. Candidates who pursue this designation must demonstrate their competence in various domains such as equity analysis, fixed income, derivatives, and financial reporting, among others. The rigorous examination process ensures that those who pass possess the requisite analytical skills and ethical grounding to make sound investment decisions in their professional roles.

Other options, while related to the field of finance, do not accurately capture the core intent of the CFA exam. For instance, issuing licenses for financial planners pertains more to regulatory bodies and may not reflect the investment focus of the CFA program. Similarly, ranking financial institutions globally is more about industry benchmarking rather than individual professional competency. Creating a network for finance professionals, while a valuable outcome of being part of the CFA community, is not the primary purpose of the exam itself. Thus, option B stands out as the correct choice in this context.