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