IFSE - CIFC - Unit 5 exam with verified answers

IFSE - CIFC - Unit 5 exam with verified answers Mutual Funds -Correct Answer-Investments that hold a collection of different securities such as equities and bonds. Holdings -Correct Answer-Collectively, the securities in a mutual fund The 3 main investment objectives -Correct Answer-1. Safety of Principal 2. Income 3. Growth Safety of Principal -Correct Answer-Strive to protect investors from losing any of their original investment. Investors expect to get back at a minimum the amount of money they put into the investment. Income -Correct Answer-Provide investors with a regular source of income over the course of their investment time horizon. Growth -Correct Answer-Have the potential to appreciate over time. Investors purchase with this this investment objective in the hope that the market price of the securities when they sell their investments will be higher than the original purchase price. Reason why Government issue securities -Correct Answer-To raise capital. Government can borrow money from the public by issuing fixed income securities (short-term, medium-term, long-term) Short-term Government Securities -Correct Answer-- mature within 5 years or less. Includes treasury bills, and provincial or municipal short-term papers Medium-term Government Securities -Correct Answer-- Mature between 5 and 10 years. Ex: Federal, provincial, or municipal bonds