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Free Investment Funds in Canada (IFC) Exam Practice Questions

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Total Questions : 537

Start with our free IFC practice questions, carefully crafted to mirror the domains, phrasing, and difficulty of the real Investment Funds in Canada exam. Each IFC exam question comes with a detailed rationale that explains not just which answer is correct but why the others fall short. That's how concepts stick. Use the free set to benchmark yourself: identify your CSI weak domains, see where you're losing marks, and build a focused study plan in minutes.

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Question # 31

Joanne’s earned income last year was $45,000 and her pension adjustment was $2,500. She has $2,000 in carry-forward registered retirement savings plan (RRSP) room for the current taxation year. What is Joanne’s maximum tax-deductible RRSP contribution amount for the current year?

Options:

A.  

$12,600

B.  

$5,600

C.  

$7,600

D.  

$8,100

Discussion 0
Question # 32

Which organization regulates mutual and investment funds?

Options:

A.  

Investment Industry Regulatory Organization of Canada (IIROC)

B.  

Securities commissions

C.  

ICE Futures Canada

D.  

Bourse de Montreal

Discussion 0
Question # 33

Winter is a Dealing Representative with Top Tier Investing, a mutual fund dealer and member of the Mutual Fund Dealers Association of Canada (MFDA). Which of the following statements about Winter ' s

suitability obligation is CORRECT?

Winter is required to make a suitability determination every time:

i) she makes a recommendation to a client

ii) a client ' s investment returns decline.

iii) she opens a new client account

iv) the markets fluctuate.

Options:

A.  

i and ii

B.  

i and iii

C.  

ii and iii

D.  

iii and iv

Discussion 0
Question # 34

What would be considered a fixed asset of a company?

Options:

A.  

Marketable securities

B.  

Inventories

C.  

Computers

D.  

Trade receivables

Discussion 0
Question # 35

What is the most substantial reward for providing excellent customer service as a mutual fund sales representative?

Options:

A.  

Improves product knowledge.

B.  

Increases referral business.

C.  

Promotes the firm ' s initiatives.

D.  

Protects the integrity of the industry.

Discussion 0
Question # 36

With respect to the tax treatment of dividends received from a taxable Canadian corporation, which of the following statements is CORRECT?

Options:

A.  

Dividends are taxed the same way interest income is taxed.

B.  

Dividends from both preferred and common shares of Canadian corporations receive preferential tax treatment.

C.  

Dividends from non-resident corporations receive preferential tax treatment.

D.  

Only 50% of dividend income is subject to tax.

Discussion 0
Question # 37

If a Canadian investor was purchasing an international equity fund, in which countries would the fund potentially be invested?

Options:

A.  

Anywhere in the world including Canada.

B.  

Anywhere in the world excluding the United States.

C.  

Anywhere in the world excluding Canada.

D.  

Anywhere in the world excluding North America.

Discussion 0
Question # 38

Zara buys a future contract with an underlying value of $100,000 worth of stocks. She is required to deposit $1,750 of margin. Two weeks later, the underlying value of the stocks is $101,900. What is Zara ' s total return?

Options:

A.  

$3,650 gain

B.  

$1,900 gain

C.  

$150 gain

D.  

$950 gain

Discussion 0
Question # 39

AWB Inc. requires new capital to finance a business opportunity. They expect to generate substantial growth from this project and repay the capital within five years. Which financial instrument should the company issue to finance this opportunity?

Options:

A.  

Debentures

B.  

Derivatives

C.  

Common shares

D.  

Investment fund

Discussion 0
Question # 40

Your client, Kimberly has investments in both registered and non-registered plans. Which of the following investment strategies is best suited for Kimberly from a tax perspective?

Options:

A.  

Include investments paying capital gains in the registered plan and foreign pay investments in the non-registered plan.

B.  

Include domestic pay assets in the registered plan and foreign pay assets in the non-registered plan.

C.  

Include interest paying investments in the registered plan and dividend paying investments in the non-registered plan.

D.  

Include dividend paying investments in the registered plan and interest paying investments in the non-registered plan.

Discussion 0
Question # 41

What value are withdrawals under a ratio withdrawal plan based upon?

Options:

A.  

Value at inception of plan

B.  

Average of start and year-end portfolio value

C.  

End of year portfolio value

D.  

Current portfolio value

Discussion 0
Question # 42

Which of the following formulas correctly shows how taxable income is calculated?

Options:

A.  

gross income less tax credits

B.  

the sum of earned income and investment income

C.  

total income less tax deductions

D.  

the sum of income from all sources

Discussion 0
Question # 43

Vlado is looking to purchase a mutual fund with the primary objective of growing his capital. Vlado believes the markets are efficient and would like to manage his investment costs. Which type of equity fund would best suit his objectives?

Options:

A.  

Equity index.

B.  

Equity growth.

C.  

Specialty fund.

D.  

Balanced fund.

Discussion 0
Question # 44

What is the national self-regulatory organization (SRO) for investment dealers?

Options:

A.  

The National Securities Commission

B.  

The Mutual Fund Dealers Association of Canada

C.  

The Canadian Securities Administrators

D.  

The Investment Industry Regulatory Organization of Canada

Discussion 0
Question # 45

You are meeting a potential client, William, for the first time. He is a high net worth individual and you are keen to get his business. Which of the following would you consider the most important to create an impressive first impression on your potential client?

Options:

A.  

your body language

B.  

volume of your voice

C.  

your words

D.  

tone of your voice

Discussion 0

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