IFIC EXAM QUESTIONS WITH CORRECT
ANSWERS!!!!
Current rAccount r- r✔✔records rexhanges rof rgoods rbetween rCanada rand rforgeiners
ROE rRATIO r- r✔✔PROFIT/EQUITY
EPS r- r✔✔PROFIT/NUMBER rOF rCOMMON rSHARES rOUTSTANDING
DIVIDEND rYIELD r- r✔✔Annual rDividend r/ rStock rPrice
P/E rRATIO r- r✔✔ratio rof rstock rprice rto rearnings rper rshare
MEASURING rPERFORMANCE r- r✔✔ENDING rNAVPS-BEGGINING rNAVPS
rX100/BEGGINING rNAVPS
PURCHASE rPRICE r- r✔✔NAVPS/100%-SALES rCHARGE
INFLATION r- r✔✔CPI rCURRENT rPERIOD- rCPI rPREVIOUS rPERIOD/CPI rPREVIOUS
rPERIOD rX r100
RETURN r% r- r✔✔CASH rFLOW r+ rENDING rVALUE r- rBEGINNING
rVALUE/BEGGINIGN rVALUE rX r100
CURRENT rRATIO r- r✔✔current rassets r- rcurrent rliabilities
INTEREST rRATIO rCOVERAGE r- r✔✔EARNING rBEFORE rINTEREST rAND
rTAXES/TOTAL rINTEREST rCHARGES
GROSS rPROFIT rMARGIN rRATIO r- r✔✔Gross rProfit/Sales
CURRENT rYIELD rON rBONDS r- r✔✔ANNUAL rCASH rSHOW/ rCURRENT rMARKET
rPRICE rX100
Direct rinvestment r- r✔✔Couple rinvesting rsavings rin ra rhome, rgovernment rbuilding ra
rnew rhighway
, Indirect rinvestment r- r✔✔Purchase rof rrepresentational ritems rsuch ras rstocks ror
rmutual rfunds
Capitals rthree rcharacteristics r- r✔✔It ris rmobile, rsensitive rto rits renvironment, rit ris
rscarce
Retail rinvestors r- r✔✔Individual rinvestors rwho rbuy rand rsell rsecurities rfor rtheir rown
rpersonal raccounts, rand rnot rfor ranother rcompany ror rorganization.
Institutional rInvestors r- r✔✔Large rorganizations r- rsuch ras rpension rfunds, rmutual
rfunds, rand rinsurance rcompanies r- rthat rinvest rtheir rown rfunds ror rthe rfunds rof rothers
Derivaties r- r✔✔Products rbased ron ror rderived rfrom ran runderlying rsecurity
Secondary rMarket r- r✔✔Investments rthat rhave ralready rbeen rissued rby rcompanies ror
rgovernments
Auction rMarket r- r✔✔buyers renter rbids rand rsellers renter roffers rfor ra rstock
Dealer rMarkets r- r✔✔Network rof rdealers rwho rtrade rwith reach rother. rOften rcalled
rOTC rmarkers
Factors rin rGDP rGrowth r- r✔✔Increase rin rpopulation, rincrease rin rcapital,
rimprovement rin rtechnology.
Phases rof rthe rbusiness rcycel r- r✔✔Expansion, rPeak, rTrough, rRecovery.
Output rGap r- r✔✔the rdifference rbetween ractual routput rand rpotential routput
demand-pull rinflation r- r✔✔increases rin rthe rprice rlevel r(inflation) rresulting rfrom ran
rexcess rof rdemand rover routput rat rthe rexisting rprice rlevel, rcaused rby ran rincrease rin
raggregate rdemand
cost-push rinflation r- r✔✔When rprices rrise rdue rto ran rincrease rin rthe rcost rof
rproduction.
Phillips rCurve r- r✔✔States rthat rwhen runemployment ris rlow, rinflation rtends rto rbe
rhigh. rWhen runemployment ris rhigh, rinflation rtends rto rbe rlow.
Sacrifice rRatio r- r✔✔the rnumber rof rpercentage rpoints rof rannual routput rlost rin rthe
rprocess rof rreducing rinflation rby r1 rpercentage rpoint
Drawdown r- r✔✔Transfer rfrom rBOC raccounts rat rchartered rbanks rback rto rBOC
Re-deposit r- r✔✔Transfer rfrom rBOC rback rto raccounts rat rchartered rbanks
ANSWERS!!!!
Current rAccount r- r✔✔records rexhanges rof rgoods rbetween rCanada rand rforgeiners
ROE rRATIO r- r✔✔PROFIT/EQUITY
EPS r- r✔✔PROFIT/NUMBER rOF rCOMMON rSHARES rOUTSTANDING
DIVIDEND rYIELD r- r✔✔Annual rDividend r/ rStock rPrice
P/E rRATIO r- r✔✔ratio rof rstock rprice rto rearnings rper rshare
MEASURING rPERFORMANCE r- r✔✔ENDING rNAVPS-BEGGINING rNAVPS
rX100/BEGGINING rNAVPS
PURCHASE rPRICE r- r✔✔NAVPS/100%-SALES rCHARGE
INFLATION r- r✔✔CPI rCURRENT rPERIOD- rCPI rPREVIOUS rPERIOD/CPI rPREVIOUS
rPERIOD rX r100
RETURN r% r- r✔✔CASH rFLOW r+ rENDING rVALUE r- rBEGINNING
rVALUE/BEGGINIGN rVALUE rX r100
CURRENT rRATIO r- r✔✔current rassets r- rcurrent rliabilities
INTEREST rRATIO rCOVERAGE r- r✔✔EARNING rBEFORE rINTEREST rAND
rTAXES/TOTAL rINTEREST rCHARGES
GROSS rPROFIT rMARGIN rRATIO r- r✔✔Gross rProfit/Sales
CURRENT rYIELD rON rBONDS r- r✔✔ANNUAL rCASH rSHOW/ rCURRENT rMARKET
rPRICE rX100
Direct rinvestment r- r✔✔Couple rinvesting rsavings rin ra rhome, rgovernment rbuilding ra
rnew rhighway
, Indirect rinvestment r- r✔✔Purchase rof rrepresentational ritems rsuch ras rstocks ror
rmutual rfunds
Capitals rthree rcharacteristics r- r✔✔It ris rmobile, rsensitive rto rits renvironment, rit ris
rscarce
Retail rinvestors r- r✔✔Individual rinvestors rwho rbuy rand rsell rsecurities rfor rtheir rown
rpersonal raccounts, rand rnot rfor ranother rcompany ror rorganization.
Institutional rInvestors r- r✔✔Large rorganizations r- rsuch ras rpension rfunds, rmutual
rfunds, rand rinsurance rcompanies r- rthat rinvest rtheir rown rfunds ror rthe rfunds rof rothers
Derivaties r- r✔✔Products rbased ron ror rderived rfrom ran runderlying rsecurity
Secondary rMarket r- r✔✔Investments rthat rhave ralready rbeen rissued rby rcompanies ror
rgovernments
Auction rMarket r- r✔✔buyers renter rbids rand rsellers renter roffers rfor ra rstock
Dealer rMarkets r- r✔✔Network rof rdealers rwho rtrade rwith reach rother. rOften rcalled
rOTC rmarkers
Factors rin rGDP rGrowth r- r✔✔Increase rin rpopulation, rincrease rin rcapital,
rimprovement rin rtechnology.
Phases rof rthe rbusiness rcycel r- r✔✔Expansion, rPeak, rTrough, rRecovery.
Output rGap r- r✔✔the rdifference rbetween ractual routput rand rpotential routput
demand-pull rinflation r- r✔✔increases rin rthe rprice rlevel r(inflation) rresulting rfrom ran
rexcess rof rdemand rover routput rat rthe rexisting rprice rlevel, rcaused rby ran rincrease rin
raggregate rdemand
cost-push rinflation r- r✔✔When rprices rrise rdue rto ran rincrease rin rthe rcost rof
rproduction.
Phillips rCurve r- r✔✔States rthat rwhen runemployment ris rlow, rinflation rtends rto rbe
rhigh. rWhen runemployment ris rhigh, rinflation rtends rto rbe rlow.
Sacrifice rRatio r- r✔✔the rnumber rof rpercentage rpoints rof rannual routput rlost rin rthe
rprocess rof rreducing rinflation rby r1 rpercentage rpoint
Drawdown r- r✔✔Transfer rfrom rBOC raccounts rat rchartered rbanks rback rto rBOC
Re-deposit r- r✔✔Transfer rfrom rBOC rback rto raccounts rat rchartered rbanks
