IFIC EXAM UPDATED ACTUAL Exam
Questions and CORRECT Answers
Current Account - CORRECT ANSWER - records exhanges of goods between Canada
and forgeiners
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 PERIOD- 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 - EARNING 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 savings 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
security
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 ANSWER - 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 low.
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 ANSWER - Transfer from BOC back to accounts at chartered
banks
Questions and CORRECT Answers
Current Account - CORRECT ANSWER - records exhanges of goods between Canada
and forgeiners
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 PERIOD- 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 - EARNING 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 savings 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
security
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 ANSWER - 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 low.
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 ANSWER - Transfer from BOC back to accounts at chartered
banks
