IFSE Institute CIFC Exam Questions in PDF and Online

QUESTION: 9

You have been researching Canadian equity mutual funds for a new client. You come across the following information.

What can you conclude from this information?

Chamberlain Equity Fund has lower volatility since its 5-year annualized return is higher.
Fontaine Equity Fund is a better fund because it has a higher quartile ranking.
Fontaine Equity Fund has a lower risk level since its Sharpe Ratio is lower.
Fontaine Equity Fund's higher MER contributes to its lower 5-year annualized return.

Answer(s): D

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Gershon is a Dealing Representative and he opens a new account for his client, Isaac. Gershon collects the necessary information from Isaac in order to designate the Trusted Contact Person (TCP) for Isaac's account.
Which of the following statements about Isaac's TCP is CORRECT?

The TCP is an alternative to a Power of Attorney (PQA) and has the authority to make changes to
Isaac's account and direct trading.
The TCP is an alternative authority on Isaac's account that has the power to place a temporary hold on Isaac's account to disallow trading.
The TCP is the person whom Gershon can speak to if he becomes concerned about Isaac's mental capacity to make financial decisions.
The TCP is the person who is designated with authority to direct financial dealings for Isaac's account and make financial decisions.

Answer(s): C

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QUESTION: 11

When you buy a put option, which of the following is TRUE?

You have the right to sell a set number of shares at a set price.
You have the right to purchase a set number of shares at a set price.
You have the obligation to sell a set number of shares at a set price.
You have the obligation to buy a set number of shares at a set price.

Answer(s): A

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QUESTION: 12

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?

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

Answer(s): D

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QUESTION: 13

Your client, Helen, just received her non-registered account statement which states that one of her mutual funds made an interest income distribution during the year. She asks you how she will be taxed on the distribution.
What do you tell Helen?

She will pay taxes on 50% of the distribution.
She will pay taxes at her top marginal tax rate.
She will pay taxes on the grossed-up amount of the income.
She will pay taxes at her average tax rate.

Answer(s): B

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QUESTION: 14

Quinton, a Dealing Representative, meets with his client Banji. Banji's Know Your Client (KYC) indicates that her risk profile is "medium''. Banji currently has $35,000 in her account which is invested 50% in the Middleton Balanced Fund and 50% in the Hector Growth Fund. She tells Quinton that she would like to contribute an additional $10,000 to purchase the Prospect Labour-Sponsored Fund.
Which of the following statements about Banji's proposed transaction is CORRECT?

Quinton can proceed with the purchase of the Prospect Labour-Sponsored Fund because it is suitable for Banji based on her current KYC.
Quinton should update Banji's risk profile to "high" so that he can proceed with the purchase of the Prospect Labour-Sponsored Fund.
Quinton should not proceed with the purchase of the Prospect Labour-Sponsored Fund because it is not suitable for Banji based on her current KY
Quinton must provide Banji with full disclosure about the risks so that he can proceed with the purchase of the Prospect Labour-Sponsored Fund.

Answer(s): C

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QUESTION: 15

What type of mutual fund can invest in specified derivatives and forward contracts for grains, meats, metals, energy products, and coffee?

global equity fund
commodity pool
labour-sponsored investment fund
specialty fund

Answer(s): B

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QUESTION: 16

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

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

Answer(s): B

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IFSE Institute Canadian Investment Funds Course CIFC Exam Questions in PDF

Free IFSE Institute CIFC Dumps Questions (page: 2)

QUESTION: 9

QUESTION: 10

QUESTION: 11

QUESTION: 12

QUESTION: 13

QUESTION: 14

QUESTION: 15

QUESTION: 16