IFSE Institute CIFC Exam Practice Test Instant Access

Question 1

On January 2nd of this year Evan purchased 500 preferred shares of Ingram Ltd. The preferred shares have a par value of $25 per share and a quarterly dividend of $0.98 per share. They also give Evan the option to sell the shares back to Ingram at par value any time from now until September 1st two years from now. What type of preferred shares does Evan own?

Aretractable

Bconvertible

Cparticipating

Dredeemable

Answer : A

Question 2

Terri, 30 years old, is the marketing manager at Provincial Winery with an average annual income of $60,000. Her spouse Yvette, 28 years old, is a project manager with a telecommunications firm earning

$70,000 per year. You are helping them to organize their investments and are trying to assess their financial resources.

Which of the following is the best question to ask?

ADo you have any children?

BDo you have pension plans at work?

CWhen do you need the money?

DWhat is your investment experience?

Answer : B

Question 3

Tony, the investment manager of True North Canadian Equity Fund is deciding on some new investments. He has done an economic analysis of the various provinces and sectors of the Canadian economy and has determined that Nova Scotia and Alberta present the best prospects. He has also identified potential in the oil and gas sector. He narrows down his selection to an oil supply firm in Medicine Hat and a drilling company in Halifax.

What investment approach is Tony employing?

Abottom-up

Bgrowth at a reasonable price (GARP)

Cvalue investing

Dtop-down

Answer : D

Question 4

Jabir recently joined Prosper Wealth Inc. and is looking forward to being a Dealing Representative for the firm. Which of the following statements CORRECTLY describe when Jabir will be eligible to open new

client accounts and sell investments?

AUpon registration application by the dealer

BUpon employment with the dealer

CUpon formal confirmation from the regulator

DUpon passing the proficiency course

Answer : C

Question 5

Jehona is a Dealing Representative with Vista Wealth Investments Inc., a mutual fund dealer in Ontario and Nova Scoti

a. Jehona has reviewed her client Sokol's account and wants to adjust the holdings and re-balance the portfolio. Which of the following statements about Jehona's permitted activities is CORRECT?

AIf Sokol has signed a Limited Authorization Form, Jehona can process the trades in the account without Sokol's pre-approval.

BIf Jehona wants to execute trades for Sokol's account, Sokol must provide his specific authorization before the trades are entered.

CIf Sokol has given Jehona discretionary trading authority, Jehona can process trades in the account without Sokol's pre-approval.

DIf Jehona wants to execute the trades without Sokol's pre-approval, Sokol must first appoint Jehona as his Power of Attorney.

Answer : B

Question 6

Jasmine purchases a 1-year, $10,000 face value strip bond for $9,600. At maturity, when Jasmine receives $10,000, which of the following statements is CORRECT?

AJasmine realizes a capital dividend of S400.

BJasmine realizes a taxable dividend of $400.

CJasmine realizes a taxable capital gain of $400.

DJasmine realizes interest income of $400.

Answer : D

Question 7

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?

AShe will be able to continue contributing to her RRIF and be subject to the same annual limits as her RRSP.

BWhen she converts her RRSP to a RRIF, she will incur a tax liability.

CShe will be subject to annual maximum withdrawal limits.

DShe does not have to withdraw the minimum amount this year.

Answer : D

IFSE Institute Canadian Investment Funds Course CIFC Exam Practice Test