CIFC Certification Exam Questions with AI Explanations

QUESTION: 33

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?

money market funds, mortgage funds, bond funds
money market funds. Canadian dividend funds, sector funds
Canadian dividend funds, global equity index funds, bond funds
money market funds, global equity funds, bond funds

Answer(s): A

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QUESTION: 34

Which of the following statements about your mutual fund registration is CORRECT?

You can sell mutual funds anywhere in Canada as long as you are registered with one of the provincial or territorial securities commissions.
Your online application must be reviewed and approved by your mutual fund dealer before you can begin to sell mutual funds.
You must renew your registration through the online NRD system every two years.
You must inform the regulatory authorities of any material or significant changes to your personal circumstances.

Answer(s): D

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QUESTION: 35

Greg, one of your clients, has been advised by a friend to invest in open-end mutual funds. He is not sure about the differences between open and closed-end funds.
What would you tell Greg about open-end funds?

The number of units is not fixed, and varies with investor demand and redemption orders.
Investors holding open-end funds can buy and sell their mutual funds anytime the stock market is open.
Units are bought and sold amongst the unitholders.
Initial shares in the mutual fund are allotted through an initial public offering (IPO)

Answer(s): A

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QUESTION: 36

Pierre buys a call option on a stock.
What is the implication of this transaction?

Pierre has the right to buy the stock if he exercises the option.
Pierre is obligated to sell the stock if the option is exercised.
Pierre has the right to sell the stock if he exercises the option.
Pierre is obligated to buy the stock if the option is exercised.

Answer(s): A

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QUESTION: 37

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?

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

Answer(s): C

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QUESTION: 38

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?

Canadian small capitalization equity fund
Canadian equity index fund
Canadian dividend fund
Canadian bond fund

Answer(s): B

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QUESTION: 39

Which of the following statement about Exchange Traded Funds (ETFs) is TRUE?

Usually the market price of an ETF is the net asset value per unit (NAVPU) of the Fund on that day.
Investors may sell their ETFs in the stock market or redeem them through the Fund at the NAVPU of the day.
ETFs have lower MERs compared to mutual funds.
All ETFs are actively managed.

Answer(s): C

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QUESTION: 40

Eleanora receives a $500 eligible Canadian dividend from her mutual fund. Her federal marginal tax rate for the year is 29%. Assuming the enhanced gross-up of 38% and a federal dividend tax credit of 15.02%, how much federal tax will she pay on her dividend?

$69.90
$189.16
$96.46
$115.40

Answer(s): C

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IFSE Institute Canadian Investment Funds Course CIFC Dumps in PDF

Free IFSE Institute CIFC Real Questions (page: 20)

QUESTION: 33

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QUESTION: 35

QUESTION: 36

QUESTION: 37

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QUESTION: 39

QUESTION: 40