IFSE Institute Canadian Investment Funds Course CIFC Dumps in PDF

Free IFSE Institute CIFC Real Questions (page: 3)

Francis wants to redeem his US Asset Allocation Fund as he needs the money for a down payment for a home purchase. The current proceeds from the redemption are USD $27,859, and the current CAD/USD exchange rate is 0.7353.
How much will Francis receive in Canadian dollars when he redeems the Funds? Please round your answer to the nearest dollar.

  1. $37,888
  2. $36,698
  3. $42,861
  4. $35,859

Answer(s): A



The owners of Underground Airways Ltd. want to take their privately owned corporation public through an initial public offering (IPO). They are speaking to a specialist from an investment dealer to determine whether it would be advisable to become listed on a stock exchange or the over-the- counter (OTC) market.

In comparing the two options, which of the following considerations is TRUE?

  1. A stock exchange listing would provide Underground with greater market exposure and public confidence than listing on the OTC market.
  2. Underground would still be directly involved in the trading of their shares on either market.
  3. Underground would be subject to less stringent listing requirements if they chose the stock exchange as compared to the OTC market.
  4. If Underground chose to list on the OTC market, there would be no secondary market available for investors.

Answer(s): A



Sven owns preferred shares that give him the option to sell his holdings back to the issuing company at a predetermined price and within a specified time.
What type of preferred shares does Sven own?

  1. retractable
  2. participating
  3. convertible
  4. redeemable

Answer(s): A



Which of the following characteristics about mortgage mutual funds is CORRECT?

  1. typically monthly distributions of interest
  2. if interest rates fall, the mutual fund's net asset value per unit (NAVPU) will decline
  3. suitable only for high risk investors
  4. risk-free where the mortgages are National Housing Act (NHA) insured

Answer(s): A



Which of the following statements about capital gains distributions from mutual fund trusts is correct?

  1. Capital gains from mutual fund trusts are deferred until the investor exits the mutual fund.
  2. Capital gains distributions from a mutual fund trust are reported annually on a T3.
  3. Capital gains distributions are not a disposition and are therefore not taxable.
  4. Capital gains from mutual fund distributions are 100% taxable.

Answer(s): B



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

  1. The manager does not believe in using benchmarks.
  2. The manager wishes to create capital gains in the mutual fund by frequently buying and selling stocks
  3. The manager believes he or she can outperform the market with his or her stock picking skills.
  4. The manager believes that as the markets are fairly priced, it would be futile to look for mis-priced securities.

Answer(s): D



Your client, Rinaldo, wants to know more about the fees associated with his mutual funds.
What can you tell him about a mutual fund's management expense ratio (MER)?

  1. Mutual funds are required to calculate the MER on a daily basis.
  2. Trailer and brokerage fees are charged separately from the MER.
  3. The MER reflects the percentage of each dollar of fund assets that is used to pay for management services.
  4. Mutual fund performance is not impacted by the MER since rates of return are published net of fees.

Answer(s): C



Sujay contributes 3% of his $60,000 salary to his employer's defined contribution pension plan. His employer contributes the same amount to the plan. How will this affect his registered retirement savings plan (RRSP) contribution room for the year?

  1. It will have no effect. RRSP contribution room is based on earned income only.
  2. It will reduce Suiay's contribution room by 51,800.
  3. It will reduce Suiay's contribution room by $1800
  4. It will reduce Suiay's contribution room by $3,600.

Answer(s): D



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