IFIC Course Review: Comprehensive
Summary for Exam Success
CSA (Canadian Securities Administration) - correct answer ✔✔Which organization produces the
National Instruments
You may accept the initial deposit but may not carry out any other transaction until you have
identified the client. - correct answer ✔✔A client wants to open an account and make an initial
deposit but does not have sufficient proof of identification with him, so you are unable to verify
his identity. What are you permitted to do?
- age, name, weight, height
- medical records
- ID numbers, income, ethnic origin, or blood type
opinions, evaluations, comments, social status, or disciplinary action
- employee files, credit records, loan records, dispute with a merchant, intentions (for example,
to acquire goods or services, or change jobs) - correct answer ✔✔Personal information under
PIPEDA includes:
The MFDA has the authority to fine, suspend or terminate the membership of its members. -
correct answer ✔✔What does the MFDA have the authority to do?
OBSI attempts to resolve disputes between participating banking services and investment firms
and their clients - correct answer ✔✔What is the objective of OBSI?
financial entities, life insurers, money service businesses, those involved in real estate, securities
dealers, dealers in precious metals and stones, and casinos. - correct answer ✔✔What entities
does the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) apply?
,private sector privacy - correct answer ✔✔PIPEDA is Canada's _________ law.
To register mutual fund dealer firms and individuals to sell securities in their province. - correct
answer ✔✔What responsibilities do provincial and territorial securities commissions have?
MFDA rules on client communication include only written communication, including trade
communications and account statements. It does not include advertising and sales
communication. - correct answer ✔✔What are the MFDA rules regarding client
communication?
magnify gains and losses - correct answer ✔✔What does leveraging do?
money market - correct answer ✔✔Which market facilitates the trading of stocks and bonds?
The capital market is a trading place for financial assets such as stocks and bonds. - correct
answer ✔✔What trades on the capital market?
-channeling funds from lenders to borrowers
-facilitating the timing of purchases
-providing a mechanism for government policy - correct answer ✔✔Financial markets serve
borrowers and lenders in three ways:
government - correct answer ✔✔Financial markets provide a mechanism to implement
________ policy.
taxes, because it's the government's use of spending and taxes to influence the overall level of
economic activity - correct answer ✔✔What could be changed as part of a fiscal policy? Why?
, Adjusting money supply, interest rates, or attempts to alter exchange rates - correct answer
✔✔What are measures of monetary policy?
-Scarcity
-Mobility
-Sensitivity - correct answer ✔✔The characteristics of capital are:
Purchasing power will fall b/c If inflation rises, then prices for goods and services rises. - correct
answer ✔✔What happens to purchasing power when inflation rises?
Purchasing power is the amount that you can buy with your dollar. - correct answer ✔✔What is
purchasing power?
increases - correct answer ✔✔What happens to the supply of the good or service produced
when the sale price increases?
the right to vote at shareholders' meetings or vote by proxy - correct answer ✔✔What rights do
owners of common shares possess?
fixed - correct answer ✔✔Coupon rates are ______ over the life of a bond.
if a dividend is not paid, it accumulates and must be paid in full to preferred shareholders
before any dividends can be made to common shareholders - correct answer ✔✔What are
cumulative preferred shares?
The issuing company reserves the right to force the investor to sell the shares back to the
company at a pre-determined price. - correct answer ✔✔What does it mean if preferred shares
are redeemable or callable?
Summary for Exam Success
CSA (Canadian Securities Administration) - correct answer ✔✔Which organization produces the
National Instruments
You may accept the initial deposit but may not carry out any other transaction until you have
identified the client. - correct answer ✔✔A client wants to open an account and make an initial
deposit but does not have sufficient proof of identification with him, so you are unable to verify
his identity. What are you permitted to do?
- age, name, weight, height
- medical records
- ID numbers, income, ethnic origin, or blood type
opinions, evaluations, comments, social status, or disciplinary action
- employee files, credit records, loan records, dispute with a merchant, intentions (for example,
to acquire goods or services, or change jobs) - correct answer ✔✔Personal information under
PIPEDA includes:
The MFDA has the authority to fine, suspend or terminate the membership of its members. -
correct answer ✔✔What does the MFDA have the authority to do?
OBSI attempts to resolve disputes between participating banking services and investment firms
and their clients - correct answer ✔✔What is the objective of OBSI?
financial entities, life insurers, money service businesses, those involved in real estate, securities
dealers, dealers in precious metals and stones, and casinos. - correct answer ✔✔What entities
does the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) apply?
,private sector privacy - correct answer ✔✔PIPEDA is Canada's _________ law.
To register mutual fund dealer firms and individuals to sell securities in their province. - correct
answer ✔✔What responsibilities do provincial and territorial securities commissions have?
MFDA rules on client communication include only written communication, including trade
communications and account statements. It does not include advertising and sales
communication. - correct answer ✔✔What are the MFDA rules regarding client
communication?
magnify gains and losses - correct answer ✔✔What does leveraging do?
money market - correct answer ✔✔Which market facilitates the trading of stocks and bonds?
The capital market is a trading place for financial assets such as stocks and bonds. - correct
answer ✔✔What trades on the capital market?
-channeling funds from lenders to borrowers
-facilitating the timing of purchases
-providing a mechanism for government policy - correct answer ✔✔Financial markets serve
borrowers and lenders in three ways:
government - correct answer ✔✔Financial markets provide a mechanism to implement
________ policy.
taxes, because it's the government's use of spending and taxes to influence the overall level of
economic activity - correct answer ✔✔What could be changed as part of a fiscal policy? Why?
, Adjusting money supply, interest rates, or attempts to alter exchange rates - correct answer
✔✔What are measures of monetary policy?
-Scarcity
-Mobility
-Sensitivity - correct answer ✔✔The characteristics of capital are:
Purchasing power will fall b/c If inflation rises, then prices for goods and services rises. - correct
answer ✔✔What happens to purchasing power when inflation rises?
Purchasing power is the amount that you can buy with your dollar. - correct answer ✔✔What is
purchasing power?
increases - correct answer ✔✔What happens to the supply of the good or service produced
when the sale price increases?
the right to vote at shareholders' meetings or vote by proxy - correct answer ✔✔What rights do
owners of common shares possess?
fixed - correct answer ✔✔Coupon rates are ______ over the life of a bond.
if a dividend is not paid, it accumulates and must be paid in full to preferred shareholders
before any dividends can be made to common shareholders - correct answer ✔✔What are
cumulative preferred shares?
The issuing company reserves the right to force the investor to sell the shares back to the
company at a pre-determined price. - correct answer ✔✔What does it mean if preferred shares
are redeemable or callable?
