IFC Practice Exam 1 Prep
IFC PRACTICE EXAM 1 PREP NEWEST 2026/2027 ACTUAL EXAM
COMPLETE 100 QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND NEW
VERSION!!
1. Which of the following transactions takes place in the secondary market?
A. Resale of previously issued securities.
B. Issue of federal Treasury bills.
C. Sale of mutual funds.
D. Issue of new debt and equity securities - Correct Answer-A
2. Which exchange in Canada deals exclusively with financial and equity futures
and options?
A. Canadian Securities Exchange.
B. The TSX Venture Exchange.
C. The Montreal Exchange.
D. The Toronto Stock Exchange - Correct Answer-C
3. What term applies to unemployment created by a new technology that
eliminates the need for subway train drivers?
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, IFC Practice Exam 1 Prep
A. Cyclical.
B. Frictional.
C. Structural.
D. Natural. - Correct Answer-C
4. The demand for blue widgets increases sharply due to a newspaper report that
using blue widgets improves recovery from influenza. What can be said about the
law of supply?
A. Price and production both decrease.
B. Price and production both increase.
C. Price decreases and production increases.
D. Price increases and production decreases. - Correct Answer-B
5.If the Consumer Price Index (CPI) was 140.6 last year and 146.9 this year, what
was the inflation rate over the year?
A. 4.12% B. 6.04% C. 5.20% D. 4.48% - Correct Answer-D
(End CPI - Beginning CPI) / Beginning CPI
6.What is the purpose of fund facts?
A. To provide clients with key fund information that is relevant to their investment
decisions.
B. To better align the interests of the fund with the client.
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, IFC Practice Exam 1 Prep
C. To determine if a fiduciary duty is present in the representative-client
relationship.
D. To clarify for clients the nature and terms of their relationship with the dealer
of the fund. - Correct Answer-A
7. What term describes the range of possible future outcomes on the price of a
security?
A. Beta.
B. Return.
C. Fluctuation.
D. Risk. - Correct Answer-D
8. A client has $100,000 in a savings account, $5,000 in a chequing account, and
$10,000 in loans. Calculate his net worth.
A. $90,000 B. $105,000 C. $95,000 D. $115,000 - Correct Answer-C
9. Which newspaper article would be likely to result in foreign capital moving out
of a country?
A. Government Re-elected for a Fourth Consecutive Term.
B. New Taxes on Foreign Direct Investment.
C. Corporate Taxes Reduced.
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, IFC Practice Exam 1 Prep
D. International Ranking of Domestic Level of Education Rises Significantly. -
Correct Answer-B
10. Which example demonstrates direct use of capital savings?
A. Depositing funds in a Canadian bank account.
B. Purchasing an investment fund.
C. Purchasing a company's stocks.
D. Building a new factory. - Correct Answer-D
11. Gary chooses not to recommend that his client sell a current mutual fund to
purchase a similar new mutual fund despite pressure to meet a sales target for
the new fund. What responsibility applies to Gary's action?
A. Professional.
B. Legal.
C. Compliance.
D. Ethical - Correct Answer-D
12. What does suitability mean?
A. Recommendations are not based on the personal and financial knowledge of
the client.
B. Understanding the personal and financial knowledge of the client.
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IFC PRACTICE EXAM 1 PREP NEWEST 2026/2027 ACTUAL EXAM
COMPLETE 100 QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND NEW
VERSION!!
1. Which of the following transactions takes place in the secondary market?
A. Resale of previously issued securities.
B. Issue of federal Treasury bills.
C. Sale of mutual funds.
D. Issue of new debt and equity securities - Correct Answer-A
2. Which exchange in Canada deals exclusively with financial and equity futures
and options?
A. Canadian Securities Exchange.
B. The TSX Venture Exchange.
C. The Montreal Exchange.
D. The Toronto Stock Exchange - Correct Answer-C
3. What term applies to unemployment created by a new technology that
eliminates the need for subway train drivers?
1|Page
, IFC Practice Exam 1 Prep
A. Cyclical.
B. Frictional.
C. Structural.
D. Natural. - Correct Answer-C
4. The demand for blue widgets increases sharply due to a newspaper report that
using blue widgets improves recovery from influenza. What can be said about the
law of supply?
A. Price and production both decrease.
B. Price and production both increase.
C. Price decreases and production increases.
D. Price increases and production decreases. - Correct Answer-B
5.If the Consumer Price Index (CPI) was 140.6 last year and 146.9 this year, what
was the inflation rate over the year?
A. 4.12% B. 6.04% C. 5.20% D. 4.48% - Correct Answer-D
(End CPI - Beginning CPI) / Beginning CPI
6.What is the purpose of fund facts?
A. To provide clients with key fund information that is relevant to their investment
decisions.
B. To better align the interests of the fund with the client.
2|Page
, IFC Practice Exam 1 Prep
C. To determine if a fiduciary duty is present in the representative-client
relationship.
D. To clarify for clients the nature and terms of their relationship with the dealer
of the fund. - Correct Answer-A
7. What term describes the range of possible future outcomes on the price of a
security?
A. Beta.
B. Return.
C. Fluctuation.
D. Risk. - Correct Answer-D
8. A client has $100,000 in a savings account, $5,000 in a chequing account, and
$10,000 in loans. Calculate his net worth.
A. $90,000 B. $105,000 C. $95,000 D. $115,000 - Correct Answer-C
9. Which newspaper article would be likely to result in foreign capital moving out
of a country?
A. Government Re-elected for a Fourth Consecutive Term.
B. New Taxes on Foreign Direct Investment.
C. Corporate Taxes Reduced.
3|Page
, IFC Practice Exam 1 Prep
D. International Ranking of Domestic Level of Education Rises Significantly. -
Correct Answer-B
10. Which example demonstrates direct use of capital savings?
A. Depositing funds in a Canadian bank account.
B. Purchasing an investment fund.
C. Purchasing a company's stocks.
D. Building a new factory. - Correct Answer-D
11. Gary chooses not to recommend that his client sell a current mutual fund to
purchase a similar new mutual fund despite pressure to meet a sales target for
the new fund. What responsibility applies to Gary's action?
A. Professional.
B. Legal.
C. Compliance.
D. Ethical - Correct Answer-D
12. What does suitability mean?
A. Recommendations are not based on the personal and financial knowledge of
the client.
B. Understanding the personal and financial knowledge of the client.
4|Page
