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Investment Funds in Canada (IFC) Exam

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Total Questions : 486

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Question # 61

What program requires pensioners to reside in Canada for a specific period of time?

Options:

A.  

OAS

B.  

RPP

C.  

CPP

D.  

GIS

Discussion 0
Question # 62

What factor is irrelevant if an investor's primary objective focuses on generating capital gains?

Options:

A.  

Coupon rate

B.  

Risk tolerance

C.  

Client knowledge

D.  

Time horizon

Discussion 0
Question # 63

10 years ago, Felipe opened a registered retirement savings plan (RRSP) account and purchased a mutual fund. The mutual fund purchased included a 7-year deferred sales charge (DSC). At the time of making his investment, him and his Dealing Representative agreed that he had a 25-year growth objective. Since Felipe knew that he was not planning to use his investment until he retired, he was not

concerned about the DS

C.  

Although the rate of return did vary from year-to-year, he never noticed his mutual fund having a drop in value. This gave Felipe more confidence in the investment. As a result, he has never made any changes to his investment.

What category of Know Your Client (KYC) information has been given?

Options:

A.  

Financial circumstances

B.  

Investment experience

C.  

Risk profile

D.  

Personal circumstances

Discussion 0
Question # 64

Which of the following is a rationale for a portfolio manager to use a passive portfolio management strategy?

Options:

A.  

The manager does not believe in using benchmarks.

B.  

The manager wishes to create c apital gains in the mutual fund by frequently buying and selling stocks

C.  

The manager believes he or she can outperform the market with his or her stock picking skills.

D.  

The manager believes that as the markets are fairly priced, it would be futile to look for mis-priced securities.

Discussion 0
Question # 65

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 # 66

What term describes the range of possible future outcomes on the price of a security?

Options:

A.  

Beta

B.  

Risk

C.  

Fluctuation

D.  

Return

Discussion 0
Question # 67

The following information is available for Monique:

Number of children

1

Lifetime RESP contributions to date

$45,000

CESG received to date

$7,200

Family income

$120,000

Desired current year contribution

$7,000

What is the maximum RESP contribution that Monique can make this year?

Options:

A.  

$7,000

B.  

$5,000

C.  

$5,500

D.  

$0

Discussion 0
Question # 68

What type of asset allocation strategy rebalances asset classes to pre-defined corridors?

Options:

A.  

Model

B.  

Tactical

C.  

Expected

D.  

Strategic

Discussion 0
Question # 69

Which of the following are obligations on mutual fund dealing representatives imposed by The Proceeds of Crime (Money Laundering) and Terrorist Financing Act?

Options:

A.  

record-keeping of large transactions, account-related information, and other relevant records

B.  

reporting all financial transactions to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)

C.  

enhancing public awareness of matters related to money laundering and terrorist financing

D.  

confirming client identity each time before concluding any transaction

Discussion 0
Question # 70

Which client has demonstrated the endowment behavioural bias?

Options:

A.  

Farida, who purchased shares in a real estate company based on the success of previous real estate company purchases

B.  

Kendra, who believed that funds managed by a certain fund management company must be good quality since she often sees the advertisements

C.  

Dave, who wants to sell his income property at a price that is higher than comparable properties in the area

D.  

Peter, who chose to hold his mutual fund shares despite the fact that the shares had lost value, the prospects for the fund were poor and believing there are stronger alternative investments available

Discussion 0
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