How to pass IFSE Institute CIFC exam with the help of dumps?

Question # 1

At 4:00 p.m. Eastern Time on July 6, the following information is collected for the Marigold Canadian Dividend Fund: What is the net asset value per unit NAVPU for the Marigold Canadian Dividend Fund for July 6?

A. $7.19
B. $7.65
C. $8.25
D. $9.27

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Question # 2

Which of the following statements about standard deviation is CORRECT? 

A. Indicates how much an investment's performance fluctuates around its average historical return. 
B. A standard deviation greater than one indicates a higher level of volatility than the market. 
C. Measures the systematic risk of an investment relative to a benchmark index. 
D. Standard deviation is also referred to as beta. 

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Question # 3

Your clients, Philip and Helen, have a disabled son, Alex, age 22. They want to set up a registered disability savings plan (RDSP) for Alex and have asked you for some information. Which statement is TRUE? 

A. Philip and Helen's contributions are refundable to them. 
B. There is no annual or lifetime maximum limit on contributions. 
C. Alex must quality for the disability tax credit. 
D. Philip and Helen's contributions are tax-deductible. 

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Question # 4

Salvatore and Harriet recently got married. They are presently renting but are looking forward to buying a new home within 5 years. They both have separate savings established in their respective registered retirement savings plans (RRSPs) of $100,000 each. They have come to Dustin, a Dealing Representative, to open an additional joint investment account to increase their savings to assist with their future plans of buying a new home. What does Dustin need to ensure about his recommendation? 

A. That the recommended investment is different from what they currently own to avoid over-concentration. 
B. That the risk profile for this new account is the same as what has been determined for other accounts. 
C. That the risk profile of the investment and each client's individual risk profile are a match. 
D. That the investment recommendation is based on the risk profile of the new joint account. 

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Question # 5

What role do investment dealers play in the Canadian and global financial markets? 

A. They are contributors to a company's profits. 
B. They are contributors to an investor's earnings. 
C. They assist with the exchange of capital for a financial instrument. 
D. By underwriting financial instruments, they raise capital for investors. 

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Question # 6

Felipe is a Dealing Representative who is developing a non-registered investment solution for Laryssa. Felipe is debating between recommending either mutual fund trusts or mutual fund corporations. He wants to recommend an investment that reduces Laryssa's exposure to taxation. Which feature may influence his recommendation? 

A. Distributions from mutual fund corporations are not taxable to investors. 
B. Mutual fund trusts can only distribute capital gains and Canadian dividends. 
C. Capital losses may be distributed from mutual fund corporations. 
D. Any income received by a mutual fund corporation is distributed in the form of either capital gains or Canadian dividends. 

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Question # 7

Which of the following best describes how a target date fund works? 

A. Through the years, the asset allocation shifts from equities towards fixed income as the maturity date approaches.
 B. Through the years, the asset allocation shifts from fixed income towards equities as the maturity date approaches. 
C. The mutual fund is constantly rebalanced to maintain an even split between equities and fixed income through the life of the mutual fund. 
D. In exchange for a lump-sum purchase the unitholder receives guaranteed monthly payments for life. 

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Question # 8

Jabir begins the registration process with his new dealer Prosper Wealth Inc. Jabir is excited about his new career and eager to start calling clients, opening new accounts, and selling investments. Which of the following CORRECTLY describes when Jabir will be eligible to open new client accounts and sell investments? 

A. Upon employment with the dealer 
B. Upon registration application by the dealer 
C. Upon passing the proficiency course 
D. Upon formal confirmation from the regulator 

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Question # 9

Maureen is 65 years old and will be retiring soon. She has a modest portfolio of mutual funds that focus on growth. As she approaches retirement, Maureen wants to switch to investments that provide steady income with low to medium risk. Given Maureen’s wishes, which of the following mutual funds would be suitable for her? 

A. money market funds, mortgage funds, bond funds 
B. money market funds. Canadian dividend funds, sector funds 
C. Canadian dividend funds, global equity index funds, bond funds 
D. money market funds, global equity funds, bond funds 

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Question # 10

One of your clients, Sheldon, is 65 years old. He has $30,000 to invest. He has a low risk profile, and an investment objective of receiving regular income. He has a time horizon of 5 years. Based on Sheldon's risk profile and investment objective, which of the following investment recommendations is MOST appropriate for Sheldon?

 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. 

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Question # 11

What information does Fund Facts provide to potential investors? 

A. What the mutual fund is currently investing in. 
B. How to calculate the taxes owed from investment income. 
C. The portfolio management strategy that is used. 
D. The remuneration paid to the Independent Review Committee. 

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Question # 12

Iliana owns 1,000 participating preferred shares in the First Canadian Bank. Which of the following features are characteristic of her investment? 

A. Iliana has the right to purchase more preferred shares in the company before common shareholders. 
B. Iliana is able to vote at the annual general meeting and elect members of the board of directors. 
C. Iliana can convert her preferred shares to common shares at a fixed price and within a specified time period. 
D. Iliana has a right to share in the bank's net profits over and above the specified dividend rate. 

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Question # 13

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? 

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) 

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Question # 14

Fabiola is an optometrist and an incorporated professional. She has fallen behind schedule regarding saving for retirement. She is considering opening an Individual Pension Plan (IPP). What provision might encourage her to use an IPP?

A. When Fabiola files her personal tax return, she will be able to claim contributions as an eligible deduction.
B. Her pension benefit is not pre-determined because it is based on the returns on investments which she chooses.
C. Contributions to her IPP can be greater than what applies to contributions for registered retirement savings plans.
D. Withdrawals will be taxable to the business, not to Fabiola, when she starts receiving her pension income.

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Question # 15

Ken is a member of his employer’s Defined Benefit Pension Plan (DBPP). Which of the following statements about Ken’s plan is CORRECT? 

A. Contributions to the plan do not result in a Pension Adjustment (PA) for Ken. 
B. The amount Ken receives in retirement depends on the performance of the investments he has selected within the plan. 
C. The amount that Ken will receive at retirement is not guaranteed. 
D. Income received from the plan is eligible for pension income splitting even if Ken retires before 65. 

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Question # 16

Which statement about unused registered retirement savings plan (RRSP) contribution room is CORRECT? 

A. It may not be more than the RRSP contribution limit for the year in which it is carried forward. 
B. It can be carried forward to future years. 
C. It can be carried forward a maximum of seven years. 
D. It may not be carried forward. 

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Question # 17

Sagira is a Compliance Officer with WealthPath Investments Inc., a registered mutual fund dealer. Sagira routinely answers inquiries from the firm's Dealing Representatives and offers guidance. Which of the following statements would Sagira likely agree is a permitted activity for Dealing Representatives to have with clients? 

A. Positions of influence are permitted if the terms and conditions of the regulator are met and the activity is approved by the dealer. 
B. Borrowing from clients is prohibited, but personal loans to clients may be offered. 
C. Purchasing real property from clients is permitted if there is a written agreement in place and the firm is party to the agreement. 
D. Authority granted to a Dealing Representative over a client's account or finances must be documented under a Power of Attorney. 

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Question # 18

Which information is typically included in the Letter of Engagement?

A. Client's responsibilities
B. Process for complaints
C. Investment Objective
D. Payee for deposits

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Question # 19

Barend is a Dealing Representative with Planvest Group Inc., a mutual fund dealer and member of the Mutual Fund Dealers Association of Canada (MFDA). Which of the following CORRECTLY describes Barend's obligation for conflicts of interest? 

A. Barend must identify material conflicts of interest and implement controls on behalf of the firm. 
B. Barend must disclose material conflicts of interest that cannot be addressed in the best interest of the client. 
C. Barend must avoid material conflicts of interest that cannot be addressed in the best interest of the client. 
D. Barend must identify material conflicts of interest and promptly report the conflicts of interest to clients. 

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Question # 20

One of your clients, Harry, has heard that he can defer paying tax on capital gains. He wants to know if what he has heard is correct and if so, how to defer paying taxes on capital gains. What would you tell Harry? 

A. He should hold profitable investments as long as possible. 
B. He should invest in mutual funds just before the dividend paying date to pick up the dividend. 
C. Harry should buy and sell investments actively. 
D. He should hold unprofitable investments as long as possible. 

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Question # 21

Which of the following statements is true when comparing fund of funds to traditional mutual funds? 

A. Fund of funds have higher fees than traditional mutual funds since there are two sets of management fees. 
B. Fund of funds have more asset class options available and lower fees than traditional mutual funds. 
C. Since fund of funds invest primarily outside Canada, they will have higher fees than traditional mutual funds. 
D. Fund of funds have more fee structure options available and lower fees than traditional mutual funds. 

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Question # 22

Michael had invested in several mutual funds, most of which have appreciated in value. He is not sure if he needs to report the gain as capital gains when he files his income tax return. What would you tell Michael? 

A. Capital gains are taxed when they are realized. 
B. He has to report any unrealized capital gains each year. 
C. Capital gains are taxed only on equity mutual funds. 
D. Capital gains are not subject to tax. 

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Question # 23

David had $10,000 in his investment account with Dynamic Investments, a mutual funds dealer. On June 28, David wants to buy 500 units in ABC Canadian Dividend Fund that has a Net Asset Value Per Unit (NAVPU) of $14.10. His friend Robert suggests that he may get a better price if he used the strategy of dollar-cost averaging. David then instructs his Dealing Representative to place a purchase order for 100 units on the first of every month starting July 1st for the next 5 months. The orders are executed at the following NAVPUs. July 01, $14.00 Aug. 01, $14.50 Sep. 01, $15.00 Oct. 01, $14.25 Nov. 01, $16.50 Did David get a better purchase price following the dollar-cost averaging strategy compared to making a lump-sum purchase of 500 shares on Jun 28, 20xx? 

A. David got his 500 units at the same price as the lump sum price he would have paid. 
B. David got his 500 units at a lower price than the lump sum price he would have paid. 
C. David realizes that Dollar cost averaging is the best strategy for getting lower prices. 
D. David got his 500 units at a higher price than the lump sum price he would have paid 

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Question # 24

Your client Gerard is 30 years old and plans to retire at age 65. He has a mutual fund portfolio of $40,000 in which he invests $1,500 monthly. Gerard's objective is to use these funds to meet the 20% down payment requirement to buy a house for $650,000. What is Gerard's investment time horizon not considering market fluctuations? 

A. 5 years 
B. 15 years 
C. 25 years 
D. 35 years 

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Question # 25

Maalik opens an account for a new client, John. During the new account process, Maalik determines that he will need to confirm John’s identity. Which of the following statements about Maalik’s identification requirements is CORRECT? 

A. If Maalik determines that there is anything suspicious about John’s transaction, he is required to report the matter to his dealer. The dealer must report the matter to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). 
B. If Maalik learns that John is the president of a state-owned company, Maalik is required to report John as a Politically Exposed Foreign Person (PEFP) to his dealer. If John is not a US person, the dealer must report the account to the Internal Revenue Service (IRS). 
C. If John wants to make a large cash deposit of $10,000 or more, Maalik is required to collect personal information about John and report it to his dealer. The dealer must report the information to the Canada Revenue Agency (CRA). 
D. If John attempts to make a suspicious deposit, Maalik is required to report the attempt to his dealer. The dealer must keep records of attempted suspicious transactions that are not reported to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). 

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Question # 26

Julia is looking for a mutual fund that will give her growth with moderate volatility. Her dealing representative has suggested the Laurentian Fund. The mutual fund's mandate limits the amount of equity exposure in the portfolio to 60%. Also, the portfolio must hold between 40 - 60% in fixed income at all times. The mutual fund distributes interest, dividends, and capital gains to its unitholders. What type of mutual fund is the Laurentian Fund?

A. asset allocation
B. balanced
C. specialty
D. index

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Question # 27

Sachin owns units of a long-term bond fund. He has heard that the Bank of Canada is likely to make it more expensive to borrow money. He is worried that the value of his investment is going to drop. What sort of investing risk is Sachin experiencing? 

A. inflation risk 
B. interest rate risk 
C. market risk 
D. liquidity risk 

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Question # 28

Robin is preparing for a client meeting. She is gathering information about a mutual fund that she would like to recommend to her client. Which of the following documents would be considered sales communication?

A. the prospectus 
B. fund facts 
C. marketing brochure 
D. annual information form 

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Question # 29

What type of shares offer its shareholders the opportunity to receive additional dividends if the company’s profit exceeds a stated level?

A. Redeemable preferred shares
B. Cumulative preferred shares
C. Convertible preferred shares
D. Participating preferred shares

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Question # 30

Gregory is a conservative investor who wants to hold a portfolio of equity securities that would fall less than the overall market in a downturn. Which of the following portfolios would you advise Gregory to invest in?

A. a portfolio with a beta equal to 1
B. a portfolio with a beta between 1 and 2
C. a portfolio with a beta greater than 2
D. a portfolio with a beta less than 1

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Question # 31

Reginald is a Dealing Representative, who feels pressure from management at the beginning of every calendar year, to open new registered retirement savings plans (RRSPs) and generate RRSP contributions. It is the end of February, and Reginald is close to reaching his personal sales objectives. He just finished an appointment with a prospective new client, Orel. Orel wants to open a tax-free savings account (TFSA) to build emergency savings. However, Reginald recommended to Orel that he should first contribute to an RRSP, and then use the tax savings for a TFSA contribution. With regards to account suitability, what can be said about Reginald's advice? 

A. Reginald is putting the client's interest first by informing Orel why he should change his investment strategy. 
B. Based on Orel's stated need, recommending an RRSP contribution is unsuitable. 
C. Recommending an investment solution that addresses two needs, is putting Reginald's client's interest first. 
D. By convincing Orel to contribute to an RRSP, instead of a TFSA, Reginald has put his client's interest first. 

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Question # 32

Which person would be categorized as a vulnerable client?

A. Nafissa, who has no savings to address an immediate financial emergency. 
B. Ginger, who has reached retirement age and is easily confused.
C. Aldous, who has become recently unemployed but still has a mortgage to pay.
D. Peter, who is 65 years old but cannot afford to retire.

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Question # 33

Douglas, aged 73, won a lottery prize of $100,000 last week. Today he contacted Vincent, his Dealing Representative, with instructions to contribute the winnings to his registered retirement income fund (RRIF) account. Which of the following statement about RRIF is CORRECT? 

A. Deposits to RRIFs cannot be withdrawn for 5 years. 
B. Deposits into RRIFs are not permitted. 
C. Deposits to a RRIF entitle Douglas to a tax deduction. 
D. Withdrawals from a non-qualifying RRIF are not taxable. 

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Question # 34

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

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 

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Question # 35

In a mutual fund dealer, who is the person responsible for establishing and maintaining compliance policies and procedures as well as monitoring and assessing compliance?

A. the chief executive officer 
B. the ultimate designated person 
C. the trustee 
D. the chief compliance officer 

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Question # 36

Throughout the year, the Redwood Global Equity Fund generated the following outcomes: . $1.00 per unit of interest income from Canadian treasury bills . $2.50 per unit of dividend income from foreign corporations . $7.75 per unit of capital gains from the sale of Canadian corporations . $6.50 per unit of capital gains from the sale of foreign corporations . $2.00 per unit of capital losses from the sale of foreign corporations Given that the Redwood Global Equity Fund is structured as a mutual fund trust, which of the following statements is true? 

A. Redwood can flow the foreign dividends to unitholders, who can then take advantage of the dividend gross-up and tax credit mechanism. 
B. Unitholders will receive $12.25 per unit of net capital gains from Redwood, of which only 50% is subject to tax. 
C. Redwood can distribute the $2.00 per unit of capital losses to unitholders, who can then use them to offset their capital gains. 
D. Since Redwood pays the tax on foreign income, it does not distribute dividend or capital gains income from foreign sources to unitholders. 

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Question # 37

Lucas wants to participate in the Lifelong Learning Program (LLP). He currently has $10,000 in his registered retirement savings plan (RRSP) for this purpose. He plans to make his maximum permitted withdrawal of $10,000 under the LLP in two months. Based on this information, what would be his investment objective for the $10,000 currently sitting in his RRSP? 

A. safety of principal 
B. income 
C. growth 
D. tax-deferral 

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Question # 38

Which of the following applies to a mutual fund trust? 

A. It has a board of directors and shareholders. 
B. It has unitholders. 
C. It is not efficient at passing through income to investors. 
D. It is always closed-end. 

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Question # 39

When comparing mutual funds, what information would help a Dealing Representative determine a suitable mutual fund for a client? 

A. Comparing historical rates of return between different types of mutual funds. 
B. Assessing historical differences in the rate of return per unit of risk of similar mutual funds. 
C. Referencing the fund code for each mutual fund that is being compared. 
D. The rights a client has if there is a desire to cancel the purchased mutual fund. 

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Question # 40

Which of the followings describes segregated funds? 

A. Segregated funds have high returns, high management fees, and cannot be redeemed until the maturity date of the contract. 
B. Segregated funds flow through capital losses to investors because the investors are the owners of the underlying fund. 
C. Segregated funds offer some protection of the capital invested but there is an added cost for the protection. 
D. Segregated funds are subject to securities regulation because they are distributed by mutual fund dealing representatives. 

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Question # 41

Karen’s know your client (KYC) profile corresponds to someone who has a long time horizon, is comfortable with risk and volatility, and is primarily interested in growth. She watches the daily movements of the Toronto Stock Exchange (TSX) and wants a mutual fund that will closely match what she sees. What kind of mutual fund would be BEST for her? 

A. Canadian small capitalization equity fund 
B. Canadian equity index fund 
C. Canadian dividend fund 
D. Canadian bond fund 

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Question # 42

As a measurement of risk, which of the following statements about beta is TRUE? 

A. A larger beta for a stock means it will outperform the market at any point in the business cycle. 
B. It is a relative measure that compares how an investment reacts to movements in a specific index. 
C. It is a ratio that compares a company's current rate of return to its average rate of return overtime. 
D. It corresponds to a stock's riskiness in relation to the frequency of dividend payments over a certain period of time. 

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Question # 43

Your client has very limited investment knowledge and is confused about what is meant by "marginal tax rate". What do you tell him? 

A. It is the tax rate applied to the next dollar earned. 
B. It is the tax rate used in calculating taxable capital gains. 
C. It is an amount resulting from dividing your total tax liability by your taxable income for the year. 
D. It is the number used to gross-up Canadian dividend income. 

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Question # 44

On January 2nd of this year Evan purchased 500 preferred shares of Ingram Ltd. The preferred shares have a par value of $25 per share and a quarterly dividend of $0.98 per share. They also give Evan the option to sell the shares back to Ingram at par value any time from now until September 1st two years from now. What type of preferred shares does Evan own? 

A. retractable 
B. convertible 
C. participating 
D. redeemable

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Question # 45

Raybert has a very short-term investment objective and has decided to purchase money market instruments. There are plenty of 90-day money market securities available for him to choose from. Although Raybert is aware that all the respective issuers have a similar need for his capital, no matter what he decides, he can only afford to purchase one. In terms of financial markets and their relationship to the principles of supply and demand, which characteristic of investment capital are the issuers being exposed to? 

A. Mobility 
B. Risk 
C. Scarcity 
D. Sensitivity 

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