IFIC EXAM questions with correct
answers passed
Current Account - correct answer ✔✔records exchanges of goods between Canada and foreigners
ROE RATIO - correct answer ✔✔PROFIT/EQUITY
EPS - correct answer ✔✔PROFIT/NUMBER OF COMMON SHARES OUTSTANDING
DIVIDEND YIELD - correct answer ✔✔Annual Dividend / Stock Price
P/E RATIO - correct answer ✔✔ratio of stock price to earnings per share
MEASURING PERFORMANCE - correct answer ✔✔ENDING NAVPS-BEGGINING NAVPS X100/BEGGINING
NAVPS
PURCHASE PRICE - correct answer ✔✔NAVPS/100%-SALES CHARGE
INFLATION - correct answer ✔✔CPI CURRENT PERIOD- CPI PREVIOUS PERIOD/CPI PREVIOUS PERIOD X
100
RETURN % - correct answer ✔✔CASH FLOW + ENDING VALUE - BEGINNING VALUE/BEGGINIGN VALUE X
100
CURRENT RATIO - correct answer ✔✔current assets - current liabilities
INTEREST RATIO COVERAGE - correct answer ✔✔EARNING BEFORE INTEREST AND TAXES/TOTAL
INTEREST CHARGES
, GROSS PROFIT MARGIN RATIO - correct answer ✔✔Gross Profit/Sales
CURRENT YIELD ON BONDS - correct answer ✔✔ANNUAL CASH SHOW/ CURRENT MARKET PRICE X100
Direct investment - correct answer ✔✔Couple investing savings in a home, government building a new
highway
Indirect investment - correct answer ✔✔Purchase of representational items such as stocks or mutual
funds
Capitals three characteristics - correct answer ✔✔It is mobile, sensitive to its environment, it is scarce
Retail investors - correct answer ✔✔Individual investors who buy and sell securities for their own
personal accounts, and not for another company or organization.
Institutional Investors - correct answer ✔✔Large organizations - such as pension funds, mutual funds,
and insurance companies - that invest their own funds or the funds of others
Derivaties - correct answer ✔✔Products based on or derived from an underlying security
Secondary Market - correct answer ✔✔Investments that have already been issued by companies or
governments
Auction Market - correct answer ✔✔buyers enter bids and sellers enter offers for a stock
Dealer Markets - correct answer ✔✔Network of dealers who trade with each other. Often called OTC
markers
Factors in GDP Growth - correct answer ✔✔Increase in population, increase in capital, improvement in
technology.
answers passed
Current Account - correct answer ✔✔records exchanges of goods between Canada and foreigners
ROE RATIO - correct answer ✔✔PROFIT/EQUITY
EPS - correct answer ✔✔PROFIT/NUMBER OF COMMON SHARES OUTSTANDING
DIVIDEND YIELD - correct answer ✔✔Annual Dividend / Stock Price
P/E RATIO - correct answer ✔✔ratio of stock price to earnings per share
MEASURING PERFORMANCE - correct answer ✔✔ENDING NAVPS-BEGGINING NAVPS X100/BEGGINING
NAVPS
PURCHASE PRICE - correct answer ✔✔NAVPS/100%-SALES CHARGE
INFLATION - correct answer ✔✔CPI CURRENT PERIOD- CPI PREVIOUS PERIOD/CPI PREVIOUS PERIOD X
100
RETURN % - correct answer ✔✔CASH FLOW + ENDING VALUE - BEGINNING VALUE/BEGGINIGN VALUE X
100
CURRENT RATIO - correct answer ✔✔current assets - current liabilities
INTEREST RATIO COVERAGE - correct answer ✔✔EARNING BEFORE INTEREST AND TAXES/TOTAL
INTEREST CHARGES
, GROSS PROFIT MARGIN RATIO - correct answer ✔✔Gross Profit/Sales
CURRENT YIELD ON BONDS - correct answer ✔✔ANNUAL CASH SHOW/ CURRENT MARKET PRICE X100
Direct investment - correct answer ✔✔Couple investing savings in a home, government building a new
highway
Indirect investment - correct answer ✔✔Purchase of representational items such as stocks or mutual
funds
Capitals three characteristics - correct answer ✔✔It is mobile, sensitive to its environment, it is scarce
Retail investors - correct answer ✔✔Individual investors who buy and sell securities for their own
personal accounts, and not for another company or organization.
Institutional Investors - correct answer ✔✔Large organizations - such as pension funds, mutual funds,
and insurance companies - that invest their own funds or the funds of others
Derivaties - correct answer ✔✔Products based on or derived from an underlying security
Secondary Market - correct answer ✔✔Investments that have already been issued by companies or
governments
Auction Market - correct answer ✔✔buyers enter bids and sellers enter offers for a stock
Dealer Markets - correct answer ✔✔Network of dealers who trade with each other. Often called OTC
markers
Factors in GDP Growth - correct answer ✔✔Increase in population, increase in capital, improvement in
technology.
