IFIC Exam (Chapter 11 And Chapter 12)
Questions All Solved.
95% - Answer According to the Canadian Investment Fund Standards Committee (CIFSC),
money market funds must invest at least _____ of their total net assets in money market
securities. short-term highly liquid na 364 days or less maturity
1. Money Market Investments are NOT INSURED by CDIC
2. Money Market Funds may fluctuate in value with interest rates - Answer What are the 2
main differences of money-market fund investments from traditional banking counterparts?
$$$$$$$$$$$$$$$
1. Current Yield
2. Effective Yield - Answer When money market funds report performance, they use 2
calculations
7-day: 0.0010489
Current Yield: 5.47%
Effective : 5.62%
[(1 + 7-day) 365/7 - 1] - Answer Beginning: 10,000,000
Final: 10,010,489
What is 7-day yield?
Current Yield?
Effective Yield?
Interest Rate Risk - Answer What is the fundamental risk factor for fixed income securities?
1. $$$
2. jia
3. 007
Questions All Solved.
95% - Answer According to the Canadian Investment Fund Standards Committee (CIFSC),
money market funds must invest at least _____ of their total net assets in money market
securities. short-term highly liquid na 364 days or less maturity
1. Money Market Investments are NOT INSURED by CDIC
2. Money Market Funds may fluctuate in value with interest rates - Answer What are the 2
main differences of money-market fund investments from traditional banking counterparts?
$$$$$$$$$$$$$$$
1. Current Yield
2. Effective Yield - Answer When money market funds report performance, they use 2
calculations
7-day: 0.0010489
Current Yield: 5.47%
Effective : 5.62%
[(1 + 7-day) 365/7 - 1] - Answer Beginning: 10,000,000
Final: 10,010,489
What is 7-day yield?
Current Yield?
Effective Yield?
Interest Rate Risk - Answer What is the fundamental risk factor for fixed income securities?
1. $$$
2. jia
3. 007
