IFIC Exam Review Questions with
Complete Rationales 2026-2027
Updated.
Which organization produces the National Instruments - Answer CSA (Canadian Securities
Administration)
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? - Answer You may accept the initial deposit but may not carry out any other transaction
until you have identified the client.
Personal information under PIPEDA includes: - Answer - 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)
What does the MFDA have the authority to do? - Answer The MFDA has the authority to fine,
suspend or terminate the membership of its members.
What is the objective of OBSI? - Answer OBSI attempts to resolve disputes between
participating banking services and investment firms and their clients
What entities does the Proceeds of Crime (Money Laundering) and Terrorist Financing Act
(PCMLTFA) apply? - Answer financial entities, life insurers, money service businesses, those
involved in real estate, securities dealers, dealers in precious metals and stones, and casinos.
PIPEDA is Canada's _________ law. - Answer private sector privacy
What responsibilities do provincial and territorial securities commissions have? - Answer To
register mutual fund dealer firms and individuals to sell securities in their province.
What are the MFDA rules regarding client communication? - Answer MFDA rules on client
communication include only written communication, including trade communications and
account statements. It does not include advertising and sales communication.
, What does leveraging do? - Answer magnify gains and losses
Which market facilitates the trading of stocks and bonds? - Answer money market
What trades on the capital market? - Answer The capital market is a trading place for financial
assets such as stocks and bonds.
Financial markets serve borrowers and lenders in three ways: - Answer -channeling funds from
lenders to borrowers
-facilitating the timing of purchases
-providing a mechanism for government policy
Financial markets provide a mechanism to implement ________ policy. - Answer government
What could be changed as part of a fiscal policy? Why? - Answer taxes, because it's the
government's use of spending and taxes to influence the overall level of economic activity
What are measures of monetary policy? - Answer Adjusting money supply, interest rates, or
attempts to alter exchange rates
The characteristics of capital are: - Answer -Scarcity
-Mobility
-Sensitivity
What happens to purchasing power when inflation rises? - Answer Purchasing power will fall
b/c If inflation rises, then prices for goods and services rises.
What is purchasing power? - Answer Purchasing power is the amount that you can buy with
your dollar.
What happens to the supply of the good or service produced when the sale price increases? -
Answer increases
What rights do owners of common shares possess? - Answer the right to vote at shareholders'
meetings or vote by proxy
Coupon rates are ______ over the life of a bond. - Answer fixed
Complete Rationales 2026-2027
Updated.
Which organization produces the National Instruments - Answer CSA (Canadian Securities
Administration)
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? - Answer You may accept the initial deposit but may not carry out any other transaction
until you have identified the client.
Personal information under PIPEDA includes: - Answer - 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)
What does the MFDA have the authority to do? - Answer The MFDA has the authority to fine,
suspend or terminate the membership of its members.
What is the objective of OBSI? - Answer OBSI attempts to resolve disputes between
participating banking services and investment firms and their clients
What entities does the Proceeds of Crime (Money Laundering) and Terrorist Financing Act
(PCMLTFA) apply? - Answer financial entities, life insurers, money service businesses, those
involved in real estate, securities dealers, dealers in precious metals and stones, and casinos.
PIPEDA is Canada's _________ law. - Answer private sector privacy
What responsibilities do provincial and territorial securities commissions have? - Answer To
register mutual fund dealer firms and individuals to sell securities in their province.
What are the MFDA rules regarding client communication? - Answer MFDA rules on client
communication include only written communication, including trade communications and
account statements. It does not include advertising and sales communication.
, What does leveraging do? - Answer magnify gains and losses
Which market facilitates the trading of stocks and bonds? - Answer money market
What trades on the capital market? - Answer The capital market is a trading place for financial
assets such as stocks and bonds.
Financial markets serve borrowers and lenders in three ways: - Answer -channeling funds from
lenders to borrowers
-facilitating the timing of purchases
-providing a mechanism for government policy
Financial markets provide a mechanism to implement ________ policy. - Answer government
What could be changed as part of a fiscal policy? Why? - Answer taxes, because it's the
government's use of spending and taxes to influence the overall level of economic activity
What are measures of monetary policy? - Answer Adjusting money supply, interest rates, or
attempts to alter exchange rates
The characteristics of capital are: - Answer -Scarcity
-Mobility
-Sensitivity
What happens to purchasing power when inflation rises? - Answer Purchasing power will fall
b/c If inflation rises, then prices for goods and services rises.
What is purchasing power? - Answer Purchasing power is the amount that you can buy with
your dollar.
What happens to the supply of the good or service produced when the sale price increases? -
Answer increases
What rights do owners of common shares possess? - Answer the right to vote at shareholders'
meetings or vote by proxy
Coupon rates are ______ over the life of a bond. - Answer fixed
