IFSE Institute CIFC Exam Questions Instant Access

Question 1

Raybert has a very short-term investment objective and has decided to purchase money market instruments. There are plenty of 90-day money market securities available for him to choose from. Although Raybert is aware that all the respective issuers have a similar need for his capital, no matter what he decides, he can only afford to purchase one.

In terms of financial markets and their relationship to the principles of supply and demand, which characteristic of investment capital are the issuers being exposed to?

AMobility

BRisk

CScarcity

DSensitivity

Answer : C

Question 2

Which of the following statements about registered education savings plans (RESPs) is CORRECT?

AContributions to RESPs are tax deductible.

BThere is a yearly contribution limit per beneficiary.

CRESPs must be collapsed by the end of the 31st year of its starting date

DContributed funds grow tax-free within the plan.

Answer : D

Question 3

Wilma has always used the services of a tax preparation firm to file her taxes but is skeptical that she has really benefitted. This year she plans to file her own taxes for the first time.

What would be useful for her to know?

AWilma's marginal tax rate may be lowered when tax deductions are applied to her total income.

BWilma's top marginal tax rate will be applied to every taxable dollar when her tax return is filed.

CWilma's tax deductions permit her to reduce her tax payable dollar-for-dollar.

DWilma's non-refundable tax credits may only reduce her taxable income dollar-for-dollar.

Answer : A

Question 4

What type of shares offer its shareholders the opportunity to receive additional dividends if the company's profit exceeds a stated level?

ARedeemable preferred shares

BCumulative preferred shares

CConvertible preferred shares

DParticipating preferred shares

Answer : D

Question 5

Preston has been working for Thompson Industries for just over a year and has been part of Thompson's deferred profit sharing plan (DPSP) program from his start date. Preston wants to know more about

these types of plans.

What would you tell Preston about DPSPs?

AThe employer is obliged to make DPSP contributions for an amount equal to employee contributions.

BOnce the plan is set up, the employer is obliged to make plan contributions each year.

CDPSP contributions are tax-deductible to the employer.

DInvestment growth within the plan is taxable each year.

Answer : C

Question 6

Taylor is chatting with other parents in the park when the conversation turns to registered education savings plans (RESPs). Taylor thinks that most of what they are saying is incorrect. Which of the following

statements about self-directed RESPs is TRUE?

AThe government contributes an additional grant for low income families who qualify.

BOnly one beneficiary may be named per RESP.

CEducational Assistance Payments (EAPs) may only be used for tuition for a post-secondary program.

DEducational Assistance Payments (EAPs) withdrawn from the plan are not taxable.

Answer : A

Question 7

In a mutual fund dealer, who is the person responsible for establishing and maintaining compliance policies and procedures as well as monitoring and assessing compliance?

Athe chief executive officer

Bthe ultimate designated person

Cthe trustee

Dthe chief compliance officer

Answer : D

IFSE Institute Canadian Investment Funds Course CIFC Exam Questions