Free Canadian Investment Regulatory Exam Practice Questions

A.  

There may be multiple recommendations that prioritize both client and dealer interests

B.  

There may be multiple suitable recommendations that put the client's interest first

C.  

There can only be one suitable recommendation balancing client and dealer interests

D.  

There can only be one suitable recommendation that puts the client's interest first

A.  

The client's understanding of derivatives and previous trading experience

B.  

A signed acknowledgment of the dealer's trading policies and procedures

C.  

The client's financial goals and past trading account performance

D.  

The client's employment information and financial background to assess product suitability

A.  

Risk tolerance is the ability to endure financial loss. Risk capacity is willingness to accept risk

B.  

Risk tolerance is the client's preferred risk level. Risk capacity is the willingness to accept risk

C.  

Risk tolerance is the willingness to accept risk. Risk capacity is the ability to endure financial loss

D.  

Risk tolerance is the ability to endure financial loss. Risk capacity is the client's preferred risk level

A.  

Automated trading using mathematical models

B.  

Manual stock selection based on fundamental and technical analysis

C.  

Trading strategies that are driven by market behaviours

D.  

Broker-executed trades based on dealer recommendations

A.  

They are used to protect against fluctuating prices

B.  

They are used to profit from fluctuating prices

C.  

They are used for investment and speculative purposes

D.  

They are used for consumption and industrial purposes

A.  

Conceal the error to avoid any reputational damage

B.  

Reinvest the proceeds in a stock that does align to offset the issue

C.  

Notify the client and document the error as per firm policy

D.  

The incident is reasonable practice with no further action needed

A.  

They provide alternative standards to replace the rules

B.  

They ensure relevant rules governing the information are followed

C.  

They provide additional standards to augment the rules

D.  

They ensure the client is satisfied with the information provided

A.  

In relation to the sale or purchase of investments for a retail client but not where exchanges or withdrawals are made

B.  

Before an Investment Dealer onboards a new client as part of the know-your-client (KYC) approach

C.  

Within a reasonable time of an Investment Dealer purchasing, selling, withdrawing or exchanging securities for a retail client's account

D.  

Before an Investment Dealer purchases, sells, withdraws, exchanges or transfers-out securities for a retail client's account

A.  

Deferred sales charges only apply to institutional clients

B.  

Explain upfront the potential charges triggered by early redemption

C.  

Disclose the deferred charges when they are going to be triggered

D.  

Avoid discussing deferred charges as they are managed by the fund provider

A.  

An investor buys call options on a stock, anticipating its price will rise in the near future

B.  

A company purchases a forward contract to lock in a fixed exchange rate for a future international transaction

C.  

A trader enters into a speculative futures contract to capitalize on anticipated price movements in crude oil

D.  

A hedge fund uses leverage in derivatives to amplify potential returns in its portfolio