IFSE Institute CIFC Exam Questions Instant Access

Question 1

Derek submits an order to sell 300 units of the Evergreen Canadian Mortgage Fund at 8:00 p.m. EST on Friday, January 6. His proceeds will be based on the net asset value per unit (NAVPU) for which day (assume no holidays)?

AFriday, January 6

BMonday, January 9

CTuesday, January 10

DWednesday, January 11

Answer : B

Question 2

Reagan has accepted a role to be the Chief Revenue Officer of a charitable organization. She is currently registered as a Dealing Representative for Sunshine Financial Services.

Which of the following would apply to her?

AThe dealer will closely monitor her sales activities to ensure any clients from the charity are not getting a discount on potential fees.

BHolding both positions at the same time is a violation of securities industry rules and regulations .

CReagan is not required to inform her dealer of this outside activity if none of her colleagues from the charity become clients.

DThe regulator will limit her from providing financial services to anyone associated with the charity.

Answer : C

Question 3

Pacari is a Dealing Representative with Cavalry Investments, a mutual fund dealer. Pacari's client, Darsha, is a long-time customer and an elderly widow. Darsha depended on her husband, for financial decisions before he passed. Pacari has also noticed that Darsha's capacity seems to be declining over the years. Luckily, with Pacari's help, Darsha has been managing her finances well. However, Darsha's daughter has been getting involved recently and has even tried to enter trades without Darsha's authorization. Pacari is particularly concerned about the last transaction for Darsha's account: a very large redemption. Pacari fears that Darsha has become a victim of financial exploitation and he raises his concerns with his dealer Cavalry. Which of the following statements about how Cavalry may proceed is CORRECT?

ACavalry can place a permanent hold on Darsha's account and disallow all future transactions.

BCavalry must place a temporary hold on Darsha's account to disallow all transactions for the account.

CCavalry can place a temporary hold on Darsha's account to temporarily disallow the redemption.

DCavalry must proceed with the redemption because temporary and permanent holds are not permitted.

Answer : C

Question 4

Ai Fen has recently become registered to sell mutual funds with Acadian Eastern Financial, a mutual fund dealer. Ai Fen determined that with her background of being a Chartered Financial Analyst, she can help people understand the nature of investing more easily than others in her field.

Which registration category will need to be prominently noted on Ai Fen's business card to comply with the ''holding out rule''?

ADealing Representative

BRegistered Representative

CInvestment Representative

DChartered Financial Analyst

Answer : A

Question 5

What is the national self-regulatory organization (SRO) for investment dealers?

AThe National Securities Commission

BThe Mutual Fund Dealers Association of Canada

CThe Canadian Securities Administrators

DThe Investment Industry Regulatory Organization of Canada

Answer : D

Question 6

Evan owns retractable preferred shares of Ingram Corp. Which statement CORRECTLY describes a key feature of Evan's shares?

AGives Evan the option to convert the Ingram Corp preferred shares into a fixed number of common shares at a predetermined price within a specified period.

BOffers Evan the opportunity to receive additional dividends if Ingram Corp's profit exceeds a stated level.

CEntitles Evan to sell the shares back to Ingram Corp at a pre-determined price and time in the future.

DAllows Ingram Corp to buy back the preferred shares at a pre-determined price within a defined period.

Answer : D

Question 7

Exchange traded funds (ETFs) that track an index and index mutual funds have many similarities. However, what is a major difference between these two products?

AWhile ETFs are prone to tracking errors, index funds are perfectly aligned with their underlying index.

BETFs can be purchased continuously throughout the trading day while index funds can only be bought or sold at the end of the day.

CThe market price of ETFs always matches the underlying basket of securities while there can be a discrepancy in pricing index funds.

DETFs do not have management fees since they are exchange traded while index funds do incur such fees.

Answer : B

IFSE Institute Canadian Investment Funds Course CIFC Exam Questions