IFIC EXAM (questions and answers)
graded A+ latest update
what term describes the range of possible future outcomes on the price of a security? - correct answer
✔✔Risk
which newspaper article would be likely to result in foreign capital moving out of a country? - correct
answer ✔✔New taxes on Foreign Direct Investment
Which of the following takes place in the secondary market? - correct answer ✔✔Resale of previously
issued securities
Which exchange in Canada deals exclusively with financial and equity futures and options? - correct
answer ✔✔The Montreal Exchange.
What term applies to unemployment created by a new technology that eliminates the need for subway
train drivers? - correct answer ✔✔Structural
The demand for blue widgets increases sharply due to a newspaper report that using blue widgets
improves recovery from influenza. What can be said about the law of supply? - correct answer ✔✔Price
and production both increase
If the CPI was 140.6 last year and 146.9 this year, what was the inflation rate over the year? - correct
answer ✔✔4.48%
Which organization regulates mutual and investment funds? - correct answer ✔✔Securities commissions
What stage in the business cycle typically has increasing wages, rising inflation, rising interest rates, with
slowing sales and decreasing business investments? - correct answer ✔✔Peak.
, Based on financial planning pyramid, what security would be appropriate for a very aggressive investor?
- correct answer ✔✔Over the counter (OTC) securities
What bias results in investors valuing an asset that they own over an asset that another individual owns?
- correct answer ✔✔Endowment.
What response would a loss-averse investor be most likely to choose in selecting a preferred investment
return scenario? - correct answer ✔✔a 25% chance of gaining $2,000, and a 75% chance of losing
nothing.
What bias would influence an investors decision to continue to hold unprofitable investment despite
little likelihood of an improvement in the investments value? - correct answer ✔✔loss aversion
Joanne's earned income last year was $45,000 and her pension adjustment was $2,500, She has $2,000
in carry forwards registered retirement savings plan room for the current taxation year. What is Joanne's
maximum tax-deductible RRSP contribution amount for the current year? - correct answer ✔✔$7,600
Which form of investment income is taxed at an investor's marginal tax rate? - correct answer
✔✔Forgein dividend income
What type of benefit plan has a final benefit that is dependent on the investment returns within the
plan? - correct answer ✔✔Defined contribution plan
What is the step in the financial planning process that includes a discussions of a clients household
budget? - correct answer ✔✔Indeity financial situation and constraints
What is the characteristic of Stage 2- Family commitment investor that most affects the ability to save for
the long term? - correct answer ✔✔Lack of liquidity
Ian is 25, employed, and has no dependents. He has no current financial or family obligations. He has
asked for your recommendation for investing a $50,000 inheritance. What asset allocation would be
suitable for him? - correct answer ✔✔10% in bond fund, 80% in equity fund, 10% in money market
funds
graded A+ latest update
what term describes the range of possible future outcomes on the price of a security? - correct answer
✔✔Risk
which newspaper article would be likely to result in foreign capital moving out of a country? - correct
answer ✔✔New taxes on Foreign Direct Investment
Which of the following takes place in the secondary market? - correct answer ✔✔Resale of previously
issued securities
Which exchange in Canada deals exclusively with financial and equity futures and options? - correct
answer ✔✔The Montreal Exchange.
What term applies to unemployment created by a new technology that eliminates the need for subway
train drivers? - correct answer ✔✔Structural
The demand for blue widgets increases sharply due to a newspaper report that using blue widgets
improves recovery from influenza. What can be said about the law of supply? - correct answer ✔✔Price
and production both increase
If the CPI was 140.6 last year and 146.9 this year, what was the inflation rate over the year? - correct
answer ✔✔4.48%
Which organization regulates mutual and investment funds? - correct answer ✔✔Securities commissions
What stage in the business cycle typically has increasing wages, rising inflation, rising interest rates, with
slowing sales and decreasing business investments? - correct answer ✔✔Peak.
, Based on financial planning pyramid, what security would be appropriate for a very aggressive investor?
- correct answer ✔✔Over the counter (OTC) securities
What bias results in investors valuing an asset that they own over an asset that another individual owns?
- correct answer ✔✔Endowment.
What response would a loss-averse investor be most likely to choose in selecting a preferred investment
return scenario? - correct answer ✔✔a 25% chance of gaining $2,000, and a 75% chance of losing
nothing.
What bias would influence an investors decision to continue to hold unprofitable investment despite
little likelihood of an improvement in the investments value? - correct answer ✔✔loss aversion
Joanne's earned income last year was $45,000 and her pension adjustment was $2,500, She has $2,000
in carry forwards registered retirement savings plan room for the current taxation year. What is Joanne's
maximum tax-deductible RRSP contribution amount for the current year? - correct answer ✔✔$7,600
Which form of investment income is taxed at an investor's marginal tax rate? - correct answer
✔✔Forgein dividend income
What type of benefit plan has a final benefit that is dependent on the investment returns within the
plan? - correct answer ✔✔Defined contribution plan
What is the step in the financial planning process that includes a discussions of a clients household
budget? - correct answer ✔✔Indeity financial situation and constraints
What is the characteristic of Stage 2- Family commitment investor that most affects the ability to save for
the long term? - correct answer ✔✔Lack of liquidity
Ian is 25, employed, and has no dependents. He has no current financial or family obligations. He has
asked for your recommendation for investing a $50,000 inheritance. What asset allocation would be
suitable for him? - correct answer ✔✔10% in bond fund, 80% in equity fund, 10% in money market
funds
