IFIC EXAM Complete Questions And Answers Graded A+

IFIC EXAM Complete Questions And Answers Graded A+ Current Account Correct Answer: records exchanges of goods between Canada and foreigners ROE RATIO Correct Answer: PROFIT/EQUITY EPS Correct Answer: PROFIT/NUMBER OF COMMON SHARES OUTSTANDING DIVIDEND YIELD Correct Answer: Annual Dividend / Stock Price P/E RATIO Correct Answer: ratio of stock price to earnings per share MEASURING PERFORMANCE Correct Answer: ENDING NAVPS -BEGGINING NAVPS X100/BEGGINING NAVPS PURCHASE PRICE Correct Answer: NAVPS/100% -SALES CHARGE INFLATION Correct Answer: CPI CURRENT PER IOD- CPI PREVIOUS PERIOD/CPI PREVIOUS PERIOD X 100 RETURN % Correct Answer: CASH FLOW + ENDING VALUE - BEGINNING VALUE/BEGGINIGN VALUE X 100 CURRENT RATIO Correct Answer: current assets - current liabilities INTEREST RATIO COVERAGE Correct Answer: EARNI NG BEFORE INTEREST AND TAXES/TOTAL INTEREST CHARGES GROSS PROFIT MARGIN RATIO Correct Answer: Gross Profit/Sales CURRENT YIELD ON BONDS Correct Answer: ANNUAL CASH SHOW/ CURRENT MARKET PRICE X100 Direct investment Correct Answer: Couple investing saving s in a home, government building a new highway Indirect investment Correct Answer: Purchase of representational items such as stocks or mutual funds Capitals three characteristics Correct Answer: It is mobile, sensitive to its environment, it is scarce Retail investors Correct Answer: Individual investors who buy and sell securities for their own personal accounts, and not for another company or organization. Institutional Investors Correct Answer: Large organizations - such as pension funds, mutual funds, and insurance companies - that invest their own funds or the funds of others Derivaties Correct Answer: Products based on or derived from an underlying secu rity Secondary Market Correct Answer: Investments that have already been issued by companies or governments Auction Market Correct Answer: buyers enter bids and sellers enter offers for a stock Dealer Markets Correct Answer: Network of dealers who trade with each other. Often called OTC markers Factors in GDP Growth Correct Answer: Increase in population, increase in capital, improvement in technology. Phases of the business cycel Correct Answer: Expansion, Peak, Trough, Recovery. Output Gap Correct A nswer: the difference between actual output and potential output demand -pull inflation Correct Answer: increases in the price level (inflation) resulting from an excess of demand over output at the existing price level, caused by an increase in aggregate demand cost-push inflation Correct Answer: When prices rise due to an increase in the cost of production. Phillips Curve Correct Answer: States that when unemployment is low, inflation tends to be high. When unemployment is high, inflation tends to be lo w. Sacrifice Ratio Correct Answer: the number of percentage points of annual output lost in the process of reducing inflation by 1 percentage point Drawdown Correct Answer: Transfer from BOC accounts at chartered banks back to BOC Re-deposit Correct Ans wer: Transfer from BOC back to accounts at chartered banks Capital/financial account Correct Answer: Records financial flows between Canada and US in the investment realm.