IFC Practice Questions

A.  

File a registration application through the dealer.

B.  

Complete the 90-day training program.

C.  

Pass the proficiency examination.

D.  

Pay the registration fee with the applicable securities administrator.

A.  

The fund manager can hedge the exchange risk by buying foreign currency through futures contracts

B.  

The value of the fund will go up if the Canadian dollar increases in value against the foreign currency

C.  

The foreign exchange risk will be offset by the lower liquidity risk

D.  

The fund may provide a hedge against the Canadian dollar

A.  

ABC common shares which had a 20% annual yield during the previous 5 years.

B.  

3% Government of Canada Bonds at par, which have a maturity that coincides with Sheldon's time horizon.

C.  

FEG Labour-Sponsored Fund which will give him a tax benefit.

D.  

Debentures of XYZ Corporation will give Sheldon a regular income and an attractive yield.

A.  

Quintin cannot accept purchase orders from a client until Lupita completes her review of the NCA

F.  

B.  

Lupita has two business days from the date of opening the new account to approve the NCAF completed by Quintin.

C.  

Quintin and Lupita are both following proper procedure regarding new account openings and purchase orders.

D.  

Unless Quintin is presently under probation, he does not need Lupita's approval regarding the NCA

F.  

A.  

Nelson may retain a copy of the RDI in the client file with detailed notes to confirm that he provided and explained the RDI to the client.

B.  

Nelson may deliver the RDI to clients who request it and keep detailed notes of the clients who were provided with the RDI.

C.  

Nelson can formalize his relationship under the RDI using a Letter of Engagement that specifies duties, responsibilities, and level of service.

D.  

Nelson can record detailed notes which confirm that he provided and explained the Fund Facts to the client within 2 days of the RDI.

A.  

They require the risk tolerance of all holders to be identical.

B.  

They require at least one signature.

C.  

They require a witness acknowledgement.

D.  

They require an application for discretionary trading.

A.  

Duty of care

B.  

Confidentiality

C.  

Compliance

D.  

Integrity

A.  

Each investor owns a portion of the fund’s portfolio.

B.  

A mutual fund can only hold securities from certain companies.

C.  

Most mutual funds can only be purchased by sophisticated investors.

D.  

Investors can only purchase whole units in the fund.

A.  

If Saabir obtains prior consent from Jacinta to use the clients' personal information for a reasonable purpose, Saabir can contact the clients to inquire about their insurance needs.

B.  

If Saabir promptly discloses that he has collected the clients' personal information from Jacinta without their consent, Saabir can use the information for a new stated purpose.

C.  

If Jacinta determines that there is a reasonable purpose for sharing the list with Saabir, she can disclose the information to Saabir without obtaining prior consent from the clients.

D.  

If Jacinta shares the list with Saabir without obtaining the clients' prior consent, she will be in breach of the Personal Information Protection and Electronic Documents Act (PIPEDA).

A.  

commodity pool

B.  

exchange traded fund (ETF)

C.  

hedge fund

D.  

labour-sponsored investment fund