IFSE Institute Canadian Investment Funds Course - CIFC Free Exam Questions

A. It is a type of systematic withdrawal program.

B. It is buying a set dollar amount of a mutual fund on a regular basis

C. It is making lump-sum purchases when the market price for a mutual fund is low.

D. It is the strategy of purchasing a set number of units of a mutual fund on a regular basis.

A. The TCP is an alternative to a Power of Attorney (PQA) and has the authority to make changes to Isaac's account and direct trading.

B. The TCP is the person who is designated with authority to direct financial dealings for Isaac's account and make financial decisions.

C. The TCP is the person whom Gershon can speak to if he becomes concerned about Isaac's mental capacity to make financial decisions.

D. The TCP is an alternative authority on Isaac's account that has the power to place a temporary hold on Isaac's account to disallow trading.

A. Move the GHI Global Equity Fund to the RRSP

B. Move $20,000 from each of the three funds to the RRSP.

C. Move the ABC Canadian Equity Fund to the RRSP.

D. Move the DEF Bond Fund to the RRSP.

A. as return of capital

B. as a capital gain

C. as interest income

D. as a dividend

A. a company's financial position at a specific point in time

B. the earnings and expenses of a business over a period of time

C. the amount of money contributed to the company by its shareholders or owners

D. the amount of profit that is reinvested in the company

A. growth

B. income

C. tax-deferral

D. safety of principal

A. During the underwriting process investment bankers raise investment capital from investors on behalf of corporations and governments issuing securities.

B. The disclosure standards for stock exchanges are not as stringent as those imposed by the OTC market.

C. Many new stock issues that are underwritten by securities firms are first listed on a stock exchange before they are sold over-the-counter.

D. Corporations must have their shares listed both on an exchange and the OTC market during the underwriting process.

A. Tevy recommends the firm's in-house Principal Protected Note (PPN) to her client Mei. Since Mei is seeking safety and liquidity, Tevy determines that the PPN is a good product for her because it's on the firm's list and the principal is guaranteed.

B. Rehan reviews the features of the Hedge Fund that her client, Georgi, wants to buy. When Rehan explains the product to Georgi, she tells him that the Hedge Fund has a lock-up period and he will not be able to redeem the fund if he needs the money.

C. Otev meets with his client, Saeed. Saeed's brother invested in the Navigator Eastern Asia Fund and it provided great returns. When Saeed asks Otev if the Navigator Fund or something similar is available through his firm, Otev doesn't know and doesn't look it up.

D. Godfried opens an account for his new client, Nadia. When the investments from her previous dealer are transferred in, Godfried sells the investments. Nadia becomes very upset when she is charged $4,329 in redemption fees that neither she nor Godfried expected.

A. The issuance of securities is a method used by corporations to redistribute their wealth to investors to lower taxes.

B. Governments can address financial needs and support initiatives when securities are first sold.

C. When common shares are initially sold, the capital raised will increase the issuing corporation's retained earnings.

D. Government debt is reduced due to the capital that is received from investors when their securities are purchased.

A. A net capital loss is permitted to be carried back indefinitely by the mutual fund.

B. A net capital loss is passed on to the unit holders by the mutual fund in the year it occurs.

C. A net capital loss is permitted to be carried forward indefinitely by the mutual fund.

D. A net capital loss is permitted to be carried forward by the mutual fund for up to 3 years.

A. Tax credits will reduce an individual's taxable income and may lower that person's top marginal tax rate.

B. After federal and provincial tax rates have been applied to a person's taxable income, tax deductions are then applied to reduce taxes.

C. Federal and provincial income tax brackets are both progressive and each respective jurisdiction determines the tax rates that will be used.

D. Once a person's taxable income reaches the next income tax bracket level, all income is subject to be taxed at the higher tax rate.

A. Based on Orel's stated need, recommending an RRSP contribution is unsuitable.

B. By convincing Orel to contribute to an RRSP, instead of a TFSA, Reginald has put his client's interest first.

C. Reginald is putting the client's interest first by informing Orel why he should change his investment strategy.

D. Recommending an investment solution that addresses two needs, is putting Reginald's client's interest first.