Canadian Investment Funds Course Exam CIFC Actual Questions

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CIFC Canadian Investment Funds Course Exam contains 100 multiple-choice questions, and you have 180 minutes to answer all the questions. The required passing score for the CIFC exam is 60%. We provide the latest Canadian Investment Funds Course Exam CIFC exam actual questions, which are useful in your preparation. Free IFSE Institute CIFC exam actual questions are below.

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1. MFDA investor protection fund has a coverage of ____ per customer account

3000000

1000000

2000000

500000

2. Harry has 20000 in his mutual fund account, his original cost of acquisition was 10000 and 5000 is the total reinvested dividends, if he decides to sell all his units and is taxed at 40%, what will be his tax payable

4000

8000

1000

2000

3. Which of the following risk is reduced by hedging

Unique risk

Market risk

Interest rate risk

Default risk

Exchange rate risk

4. Which courses fall under the educational qualification needed to be a mutual fund dealer

Investment fund in Canada and Canadian securities course

Associate Financial planner

Chartered financial analyst

Certified Financial planner

5. If the NAV of a mutual fund is 15 and the front end load is 5%, what is the purchase price per unit

14.25

15.79

15.75

6. Harry is a new Mutual fund dealer, he selectively leaves out that he is one of the biggest shareholders and sits on the board of a mutual fund company he is suggesting the clients to buy. He is most likely in breach of

Confidentiality

Integrity

Compliance

Professionalism

Duty of care

7. Which of the following is most likely not part of Know your client requirement

Investment needs and objectives

Sexual orientation and gender identity

Investment time horizon

Financial circumstances

Personal circumstances

Risk profile

Investment knowledge

8. Based on Philosophies of Fixed Income investing the statement " Investors move between long term and very short term T- Bills based on their forecast of risk free rate " is most likely associated with

Interest rate Anticipation

Sector trading

Security selection

Value investing

9. All mutual fund dealers except from ___ are required to be part of MFDA

Alberta

Ontario

British Columbia

Quebec

10. Harry who is conservative investor wants to minimize volatility, which fund amongst the below options will he most likely choose

B - standard deviation 2

D standard deviation 7

C- Standard deviation 10

A- Standard deviation 5

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11. Which of the following is usually associated with "trading of units beyond limited numbers of trades mentioned in the fund "

Frequent trading fees

Account closing fee

Acquisition fee

Redemption fee

Management fee

Trustee fee

Transfer fee

12. Anti money laundering and terrorist finance rules dictate that you should report any cash transaction above

500

100000

1000

10000

13. Which of the following risk is generally associated with " The unique risk that a bond will not be paid "

Default risk

Unique risk

Interest rate risk

Exchange rate risk

Market risk

14. Which of the following is not part of Professionalism primary value

Personal financial dealings with clients

Client orders

Other personal endeavors

Personal business

Priority of clients interest

Client Business

Trades by registered and approved individuals

15. Which of the following activities mutual fund dealers can not conduct before getting their registration

Refer client to registered mutual fund dealer

Receive redemption request

Provide basic information regarding current holdings

Forwarding completed orders to a registered salesperson

Provide any advice or recommendation on mutual funds

16. Calculate the reward to risk ratio of ABC fund which had a return of 10% and standard deviation of 5.5%. The risk free rate was 3%.

4.5

1.27

3.33

1.81

17. Which of the following is generally associated with Trailer fees in a Mutual fund

Fees charged on purchase of a mutual fund

Fees charged as a percentage of assets and paid to mutual fund sales representative every year

Fees charge ever year as a compensation for fund managers and administration

Fees changed on sale of mutual fund

18. Which of the following risk is generally associated with " Changes in interest rates leading to changes in fixed income securities prices "

Default risk

Exchange rate risk

Unique risk

Interest rate risk

Market risk

19. Which of the following risk cannot be reduced

Exchange rate risk

Interest rate risk

Default risk

Market risk

Unique risk

20. Which of the following is not part of Professionalism primary value

Client orders

Client Business

Other personal endeavors

Personal financial dealings with clients

Personal business

Trades by registered and approved individuals

Client information and use of confidential information

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21. Which of the following is generally associated with sales deferred (back end load) in a Mutual fund

Fees charged on purchase of a mutual fund

Fees changed on sale of mutual fund

Fees charge ever year as a compensation for fund managers and administration

Fees charged as a percentage of assets and paid to mutual fund sales representative every year

22. Which of the following is not one of the common infractions related to vulnerable clients

NAAF updates to justify trading

Accepting trading instruction from unauthorized relative of client

Avoiding front running the client by putting client interest first

Investment objectives that benefit the estate than the client

Accepting loans or gifts from clients

Accepting executor power from clients

Use of higher risk investments to boost client income

23. Harry has made a promise of 12% annual returns to his clients, is usually a breach of which of the following prohibited practices

Promising a future price

Quoting a future price

Offer to repurchase

Selling without being registered

Provision on non monetary benefits

Advertising the registration

24. Which of the following risk is reduced by diversification

Unique risk

Interest rate risk

Exchange rate risk

Default risk

Market risk

25. Harry is a new Mutual fund dealer, he selectively leaves out one year of bad performance while reporting performance to his client. He is most likely in breach of

Professionalism

Compliance

Confidentiality

Integrity

Duty of care

26. Harry is invested in a short term government debt, which of the following index is most like suitable for measuring his performance

SAP / TSX 60

SAP 500

FTSE Canada 91 days T - bills index

S&P / tsx composite

MSCI canada ESG Leaders Index

FTSE Canada Universe bond Index

MSCI World ESG Index

27. All else being equal, which of the following mutual funds would Harry most likely choose

Fund A- MER 0.5 %

Fund D- MER 0.25 %

Fund B- MER - 2 %

Fund C- MER 1.5 %

28. " Having to subpoena witnesses, seize documents for examination and operate as administrative tribunals " is most likely related to which of the powers of securities administrators

Enforcement

Registration

Resinding

Disclosure

29. Which of the following transaction is not shown in T3/ T5 document

Harry sells his fund units at 15 NAVPS, cost of acquisition was 11 NAVPS

Fund makes a distribution of 1 dollar in interest income

Fund makes a distribution of 6 dollars in capital gains

Fund makes a distribution of 2 dollars in dividend income

30. Which of the following is not part of Duty of care primary value

Know your client

Unsolicited orders

Respect for clients assets

Due diligence

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31. " Ensuring that all documents and other required information are prepared in accordance with requirement and provided to the appropriate parties in timely manner " is most likely related to which of the powers of securities administrators

Registration

Enforcement

Resinding

Disclosure

32. Harry is a new Mutual fund dealer, he is advising Caitlin on covered call mutual fund, he suggested she buy a mutual fund in which his partner is the fund manager and has higher fees. He is most likely in breach of

Duty of care

Professionalism

Integrity

Confidentiality

Compliance

33. " Reviewing the applicants integrity, financial solvency and general competence " is most likely related to which of the powers of securities administrators

Enforcement

Disclosure

Registration

Resinding

34. Harry is a Mutual fund dealer, commingled his clients assets with his assets, which was in violation of SRO rules. He is most likely in breach of

Professionalism

Integrity

Duty of care

Compliance

Confidentiality

35. Harry has decided to invest 500 in an index fund tracking SAP 500 every month, he is most likely following

Fixed dollar withdrawal

One time investment

Dollar cost averaging

Ratio Withdrawal

Canadian Investment Funds Course Exam CIFC Actual Questions

Canadian Investment Funds Course Exam CIFC Actual Questions

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