IFIC EXAM UPDATED Exam Questions
and CORRECT Answers
what term describes the range of possible future outcomes on the price of a security? -
CORRECT ANSWER - Risk
which newspaper article would be likely to result in foreign capital moving out of a country? -
CORRECT ANSWER - New taxes on Foreign Direct Investment
Which of the following takes place in the secondary market? - CORRECT ANSWER -
Resale of previously issued securities
Which exchange in Canada deals exclusively with financial and equity futures and options? -
CORRECT ANSWER - The Montreal Exchange.
What term applies to unemployment created by a new technology that eliminates the need for
subway train drivers? - CORRECT ANSWER - Structural
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? - CORRECT
ANSWER - Price and production both increase
If the CPI was 140.6 last year and 146.9 this year, what was the inflation rate over the year? -
CORRECT ANSWER - 4.48%
Which organization regulates mutual and investment funds? - CORRECT ANSWER -
Securities commissions
What stage in the business cycle typically has increasing wages, rising inflation, rising interest
rates, with slowing sales and decreasing business investments? - CORRECT ANSWER -
Peak.
, Based on financial planning pyramid, what security would be appropriate for a very aggressive
investor? - CORRECT ANSWER - Over the counter (OTC) securities
What bias results in investors valuing an asset that they own over an asset that another individual
owns? - CORRECT ANSWER - Endowment.
What response would a loss-averse investor be most likely to choose in selecting a preferred
investment return scenario? - CORRECT ANSWER - a 25% chance of gaining $2,000,
and a 75% chance of losing nothing.
What bias would influence an investors decision to continue to hold unprofitable investment
despite little likelihood of an improvement in the investments value? - CORRECT
ANSWER - loss aversion
Joanne's earned income last year was $45,000 and her pension adjustment was $2,500, She has
$2,000 in carry forwards registered retirement savings plan room for the current taxation year.
What is Joanne's maximum tax-deductible RRSP contribution amount for the current year? -
CORRECT ANSWER - $7,600
Which form of investment income is taxed at an investor's marginal tax rate? - CORRECT
ANSWER - Forgein dividend income
What type of benefit plan has a final benefit that is dependent on the investment returns within
the plan? - CORRECT ANSWER - Defined contribution plan
What is the step in the financial planning process that includes a discussions of a clients
household budget? - CORRECT ANSWER - Indeity financial situation and constraints
What is the characteristic of Stage 2- Family commitment investor that most affects the ability to
save for the long term? - CORRECT ANSWER - Lack of liquidity
and CORRECT Answers
what term describes the range of possible future outcomes on the price of a security? -
CORRECT ANSWER - Risk
which newspaper article would be likely to result in foreign capital moving out of a country? -
CORRECT ANSWER - New taxes on Foreign Direct Investment
Which of the following takes place in the secondary market? - CORRECT ANSWER -
Resale of previously issued securities
Which exchange in Canada deals exclusively with financial and equity futures and options? -
CORRECT ANSWER - The Montreal Exchange.
What term applies to unemployment created by a new technology that eliminates the need for
subway train drivers? - CORRECT ANSWER - Structural
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? - CORRECT
ANSWER - Price and production both increase
If the CPI was 140.6 last year and 146.9 this year, what was the inflation rate over the year? -
CORRECT ANSWER - 4.48%
Which organization regulates mutual and investment funds? - CORRECT ANSWER -
Securities commissions
What stage in the business cycle typically has increasing wages, rising inflation, rising interest
rates, with slowing sales and decreasing business investments? - CORRECT ANSWER -
Peak.
, Based on financial planning pyramid, what security would be appropriate for a very aggressive
investor? - CORRECT ANSWER - Over the counter (OTC) securities
What bias results in investors valuing an asset that they own over an asset that another individual
owns? - CORRECT ANSWER - Endowment.
What response would a loss-averse investor be most likely to choose in selecting a preferred
investment return scenario? - CORRECT ANSWER - a 25% chance of gaining $2,000,
and a 75% chance of losing nothing.
What bias would influence an investors decision to continue to hold unprofitable investment
despite little likelihood of an improvement in the investments value? - CORRECT
ANSWER - loss aversion
Joanne's earned income last year was $45,000 and her pension adjustment was $2,500, She has
$2,000 in carry forwards registered retirement savings plan room for the current taxation year.
What is Joanne's maximum tax-deductible RRSP contribution amount for the current year? -
CORRECT ANSWER - $7,600
Which form of investment income is taxed at an investor's marginal tax rate? - CORRECT
ANSWER - Forgein dividend income
What type of benefit plan has a final benefit that is dependent on the investment returns within
the plan? - CORRECT ANSWER - Defined contribution plan
What is the step in the financial planning process that includes a discussions of a clients
household budget? - CORRECT ANSWER - Indeity financial situation and constraints
What is the characteristic of Stage 2- Family commitment investor that most affects the ability to
save for the long term? - CORRECT ANSWER - Lack of liquidity
