IFSE Institute CIFC Dumps - The Sure Way To Pass Exam
CIFC Exam Questions (Updated 2023) 100% Real Question Answers
NEW QUESTION # 21
Bernadette has a high-paying job and is in the top tax bracket. She recently received a payment of $5 million upon the settlement of her uncle's estate. Bernadette would like to invest her inheritance in financial products that would not only grow her money but is also income tax friendly.
Which of the following would provide the most favourable tax treatment?
- A. Coupon payments from Government of Canada bonds.
- B. Capital gains from a large Canadian corporation.
- C. Dividends received from a large foreign corporation.
- D. Eligible dividends from a publicly-listed Canadian corporation
Answer: D
NEW QUESTION # 22
Marta is turning 71 years old this year. She will have to convert her registered retirement savings plan (RRSP) to a registered retirement income fund (RRIF). Which of the following statements is TRUE?
- A. When she converts her RRSP to a RRIF, she will incur a tax liability.
- B. She will be subject to annual maximum withdrawal limits.
- C. She will be able to continue contributing to her RRIF and be subject to the same annual limits as her RRSP.
- D. She does not have to withdraw the minimum amount this year.
Answer: D
NEW QUESTION # 23
The Mutual Fund Dealers Association of Canada (MFDA) has strict rules concerning conflicts of interest.
Which of the following is TRUE?
- A. Gifts and benefits may be provided to a client if your employer is aware of the benefits and has given approval.
- B. Activities that do not relate specifically to your employer need not be reported.
- C. Borrowing money from a client will always be acceptable provided there is a written contract detailing the nature of the agreement.
- D. Only actual conflicts must be reported to your employer. Potential conflicts need not be reported because they have not happened yet.
Answer: A
NEW QUESTION # 24
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?
- A. Units are bought and sold amongst the unitholders.
- B. The number of units is not fixed, and varies with investor demand and redemption orders.
- C. Investors holding open-end funds can buy and sell their mutual funds anytime the stock market is open.
- D. Initial shares in the mutual fund are allotted through an initial public offering (IPO)
Answer: B
NEW QUESTION # 25
Sarah and Kyle are a married couple. They are both 34 years of age and work as teachers. Their combined annual income is $130,000. They are able to save $800 each month. They own a home worth $340,000 with a
$120,000 mortgage. Since they work for the same employer, they have the same defined benefit pension plan.
Other than a tax-free savings account (TFSA) in Kyle's name with $5,000, they do not have any other assets.
They are avid sailors and want to save towards a purchase of a sailboat. For the type of sailboat they want, they estimate it should cost around $65,000. They want you to recommend an investment for their monthly savings to help them achieve their goal faster.
What question should you ask them next?
- A. How much do you make individually each year?
- B. What is your net worth?
- C. What is your investment objective for these savings?
- D. How would you feel if you lost part of your money in the short-term?
Answer: C
NEW QUESTION # 26
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 that Ken will receive at retirement is not guaranteed.
- C. Income received from the plan is eligible for pension income splitting even if Ken retires before 65.
- D. The amount Ken receives in retirement depends on the performance of the investments he has selected within the plan.
Answer: C
NEW QUESTION # 27
Which of the following statements is TRUE about the movement of business cycles in the Canadian economy?
- A. A period of at least 3 consecutive months of contraction is called a recession.
- B. A period of economic expansion is followed by a period of economic contraction.
- C. A period of economic expansion is always of the same length as a period of economic contraction.
- D. A period of economic expansion is of the same length in every cycle.
Answer: B
NEW QUESTION # 28
Which of the following characteristics about mortgage mutual funds is CORRECT?
- A. typically monthly distributions of interest
- B. suitable only for high risk investors
- C. if interest rates fall, the mutual fund's net asset value per unit (NAVPU) will decline
- D. risk-free where the mortgages are National Housing Act (NHA) insured
Answer: A
NEW QUESTION # 29
Portia is a Dealing Representative with Highview Wealth Inc., a mutual fund dealer. Portia recommends the Stature Growth Fund to her client Clive. Which of the following CORRECTLY describes what Portia must do in order to satisfy her obligations under the Client Relationship Model (CRM) and Client Focused Reforms (CFR)?
- A. Portia must provide Clive with the pre-trade disclosure to address any material conflicts of interest with the trade.
- B. Portia must mark the trade as ^unsolicited" if Clive wants to proceed with the trade and it is not suitable for him.
- C. Portia must calculate the net asset value per unit (NAVPU) and report it to Give in the trade confirmation.
- D. Portia must disclose the costs, expenses, and ongoing fees associated with the investment prior to the trade.
Answer: D
NEW QUESTION # 30
Xian-Li believes she is a sophisticated investor. She has constructed her own portfolio and has had some success. She does not believe in studying a company's details such as earnings, expenses, or assets. She is more concerned with patterns in a company's stock price over time. She believes patterns form and can be used to predict future movements in the market.
How does Xian-Li evaluate the companies in her portfolio?
- A. value analysis
- B. technical analysis
- C. fundamental analysis
- D. flowchart analysis
Answer: B
NEW QUESTION # 31
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 registration application by the dealer
- B. Upon passing the proficiency course
- C. Upon employment with the dealer
- D. Upon formal confirmation from the regulator
Answer: D
NEW QUESTION # 32
Iliana owns 1,000 participating preferred shares in the First Canadian Bank. Which of the following features are characteristic of her investment?
- A. Iliana can convert her preferred shares to common shares at a fixed price and within a specified time period.
- B. Iliana has the right to purchase more preferred shares in the company before common shareholders.
- C. Iliana is able to vote at the annual general meeting and elect members of the board of directors.
- D. Iliana has a right to share in the bank's net profits over and above the specified dividend rate.
Answer: C
NEW QUESTION # 33
Which statement regarding the underwriting process and over-the-counter (OTC) markets is CORRECT?
- A. Corporations must have their shares listed both on an exchange and the OTC market during the underwriting process.
- B. Many new stock issues that are underwritten by securities firms are first listed on a stock exchange before they are sold over-the-counter.
- C. The disclosure standards for stock exchanges are not as stringent as those imposed by the OTC market.
- D. During the underwriting process investment bankers raise investment capital from investors on behalf of corporations and governments issuing securities.
Answer: D
NEW QUESTION # 34
A client has $950,000 in his RRSP account and $550,000 in his non-registered account held in nominee name with Tradewell Mutual Funds.
In the event of his dealer, Tradewell Mutual Funds declaring insolvency, what is the total amount the client be eligible to receive from the Mutual Fund Dealers Association of Canada Investor Protection Corporation (IPC)?
- A. The client will be eligible for coverage of $950,000.
- B. The client will be eligible for coverage of $1,500.000.
- C. The client will be eligible for coverage of $550,000.
- D. The client will not be eligible for any coverage.
Answer: A
NEW QUESTION # 35
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, global equity funds, bond funds
- C. Canadian dividend funds, global equity index funds, bond funds
- D. money market funds. Canadian dividend funds, sector funds
Answer: A
NEW QUESTION # 36
What role do investment dealers play in the Canadian and global financial markets?
- A. By underwriting financial instruments, they raise capital for investors.
- B. They assist with the exchange of capital for a financial instrument.
- C. They are contributors to a company's profits.
- D. They are contributors to an investor's earnings.
Answer: B
NEW QUESTION # 37
Solomon is a Dealing Representative who is excited about a new equity fund his dealer recently approved. He thinks investors will be attracted to the fund's historical performance. He has a prospective new client, Madira, who is 25 years old. Madira has invested in mutual funds before, but not with Solomon's dealer. She has made an appointment to open a new RRSP with Solomon's firm.
What does Solomon need to do to make this a suitable recommendation?
- A. Match the past rates of return of the mutual fund with what is the anticipated rate of return.
- B. Rely on the risk rating of the mutual fund when offering an investment solution.
- C. Show from past fund performance, that mutual fund costs are not important if there are high returns.
- D. Identify how the proposed investment is in alignment with the investor's profile and holdings.
Answer: D
NEW QUESTION # 38
Sean purchases 500 units of Penn Canadian Equity Fund when the net asset value per unit (NAVPU) is
$16.70. On December 15, the mutual fund's NAVPU is $21. On December 16, the mutual fund declares a distribution of $1.25 per unit. Sean's distribution is immediately reinvested and he purchases additional units of the mutual fund.
Which of the following statements about the effect of the distribution is correct?
- A. Sean's distribution is reinvested at a NAVPU of $19.75 and he receives approximately 31.65 additional units.
- B. The total value of Sean's mutual fund holdings after the distribution and reinvestment is §9,875.
- C. The NAVPU of the mutual fund does not change after the distribution since Sean reinvests his distribution and purchases additional units.
- D. After the distribution. Sean will have J&625 in cash and JB8.350 worth of the Penn Canadian Equity Fund.
Answer: A
NEW QUESTION # 39
......
Pass IFSE Institute CIFC Exam Quickly With ExamTorrent: https://www.examtorrent.com/CIFC-valid-vce-dumps.html
Prepare CIFC Question Answers - CIFC Exam Dumps: https://drive.google.com/open?id=1mI6UdT_BoQ3KGCZAlHvD5CIfXpidzCIn
