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IFC Practice Questions

Investment Funds in Canada (IFC) Exam

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Total Questions : 486

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Question # 51

Greg is a Dealing Representative. As a part of his business building activity, Greg prepares several messages to post on his website and Facebook page. Which statement CORRECTLY describes this

situation?

Options:

A.  

Posting a sales communication to a website is prohibited by the Personal Information Protection and Electronic Documents Act (PIPEDA).

B.  

Posting messages to Facebook is prohibited by Canada's Anti-Spam Law (CASL).

C.  

Greg's messages must be approved by his dealer before he can publish or issue the communication.

D.  

Greg must not discuss the investment performance, rankings, or ratings of a fund in his communication.

Discussion 0
Question # 52

What type of GIC would be most appropriate for an investor who believes equity markets will be strong in the next five years?

Options:

A.  

Laddered

B.  

Index-linked

C.  

Cashable

D.  

Interest-rate-linked

Discussion 0
Question # 53

An employee may begin offering mutual fund advice following the completion of which requirement?

Options:

A.  

Registration as a representative.

B.  

Industry-related proficiency courses.

C.  

Six-month close supervision.

D.  

90-day training program.

Discussion 0
Question # 54

Jabir recently joined Prosper Wealth Inc. and is looking forward to being a Dealing Representative for the firm. Which of the following statements CORRECTLY describe when Jabir will be eligible to open new

client accounts and sell investments?

Options:

A.  

Upon registration application by the dealer

B.  

Upon employment with the dealer

C.  

Upon formal confirmation from the regulator

D.  

Upon passing the proficiency course

Discussion 0
Question # 55

An investor who wants to deplete their funds within the next five years is considering various withdrawal plans. Assuming the investor is less concerned about predictable annual cash flows, what withdrawal plan type is most appropriate for the investor?

Options:

A.  

Ratio.

B.  

Fixed-dollar.

C.  

Life.

D.  

Fixed-period.

Discussion 0
Question # 56

What statement CORRECTLY describes a key difference between bonds and debentures?

Options:

A.  

Regular secured bonds offer a higher level of income than debentures.

B.  

Bonds are secured by the specific assets of a company whereas debentures are not secured by real assets or collateral.

C.  

Debentures have higher priority than bondholders for the company's assets in the event that the company goes bankrupt.

D.  

Debentures are considered high risk because they are not backed by the reputation or credit worthiness of the issuer.

Discussion 0
Question # 57

Sonya meets with her client Elijah to review different investment approaches that could be offered to help him reach his financial goals. Part of that discussion included Sonya mentioning factors such as

inflation, interest rates, and rates of return. Which stage of the Strategic Investment Planning (SIP) process does this describe?

Options:

A.  

Clarify Client Status, Problems and Opportunities

B.  

Identify Strategies and Present the Plan

C.  

Implement the Plan

D.  

Monitor and Update

Discussion 0
Question # 58

Which of the following statements is TRUE about the movement of business cycles in the Canadian economy?

Options:

A.  

A period of economic expansion is followed by a period of economic contraction.

B.  

A period of economic expansion is of the same length in every cycle.

C.  

A period of economic expansion is always of the same length as a period of economic contraction.

D.  

A period of at least 3 consecutive months of contraction is called a recession.

Discussion 0
Question # 59

Why is it important to include ethical decision-making as a Standard of Conduct?

Options:

A.  

Ensures conformity with externally established standards.

B.  

Enables CIRO to regulate the actions and behaviours of registered individuals.

C.  

Provides flexibility so registrants can use their own judgement.

D.  

Allows the security industry to operate with the trust and confidence of the public.

Discussion 0
Question # 60

Rashad is a Dealing Representative with Investors Network Corp., a mutual fund dealer. Investors Network is registered in all provinces and territories of Canada and Rashad is registered in the Edmonton,

Alberta branch. Rashad is told to provide his Branch Manager with a number of client files. The client files will be part of a compliance review by the applicable self-regulatory organization (SRO). Which

regulator will review Rashad's client files?

Options:

A.  

Canadian Securities Administrators (CSA)

B.  

Mutual Fund Dealers Association of Canada (MFDA)

C.  

Autorité de marchés financiers (AMF)

D.  

Chambre de la sécurité financière (CSF)

Discussion 0
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