IFIC (questions and answers) latest
update passed
Select the response that a loss averse investor would be most likely to choose in selecting a preferred
investment return scenario - correct answer ✔✔a) an assured loss of $750 chance
b) 75% chance of losing $1000 and a 25% chance of losing nothing
c) 5% chance of gaining $1500 and a 95% chance of losing $800
D)25% chance of gaining $2000 and a 75% chance of losing nothing
Identify the type of risk that is the fundament rick that is the fundamental risk factor for fixed-income
securities - correct answer ✔✔a) reinvestment risk
b)liquidity risk
C)interset rate risk
d)market risk
Select the newspaper article that would be likely to result in foreign capital moving out of a country -
correct answer ✔✔A) new taxes on foreign direct investment
b)corp taxes reduced
c)government re-elected for a 4th consecutive term
d)international ranking of domestic level of education
A MF reports a 10year compound rate of return of 15%. the fund changes a front end load of 4% charges
and has a 2.3% management expense ratio. Indicate the other factors that have been taken into account
in calculating the 15% return - correct answer ✔✔1) management fees&expenses
2)the front end load
3)the reinvestment of all dividends
4)transfer fees
a)1&2
b)2&3
, c)3&4
D)1&3
Select the list that contains items typically classified as current assets on the statement of financial
position - correct answer ✔✔a)cash,accused charges & accounts receivable
b)cash,inventories & depreciation
c)cash,accounts receivable&retained earnings
D)cash,accounts receivable &retained
A client places a purchase order for ABC Equity Fund. The sales rep is are of a similar fund XYZ Fund
that's shown almost identical performance & management expense ratio but has a higher trailer fee. The
sales rep counsels the client the purchase XYZ Fund. Identify the aspect of standard B-Trustworthiness,
Honesty & fairness that the rep violated - correct answer ✔✔a)complete & accurate info
b)repeat for clients assets
c)priority of clients interests
D)disclosure
Your client, Mr. Leblanc tells you that for tax purposes he would like to increase the Canadian dividend
income he receives. Assuming that the fund is within his risk profile, which find would you recommend
to Mr. Leblanc - correct answer ✔✔A)a blue chip equity fund
b)equity growth fund
c)equity index fund that uses futures contracts
d)global dividen equity fund
A MF rep is under pressure to meet certain sales objectives. However he consistently ignores these
quotes when making client recommendations which standard of conduct has he followed - correct
answer ✔✔a)obligation to keep client info confidential
b)provision of appropriate cautions for potentially unsuitable investments
c)the maintenance of a high standard of professional knowledge
D)obligations to put the clients interests first
update passed
Select the response that a loss averse investor would be most likely to choose in selecting a preferred
investment return scenario - correct answer ✔✔a) an assured loss of $750 chance
b) 75% chance of losing $1000 and a 25% chance of losing nothing
c) 5% chance of gaining $1500 and a 95% chance of losing $800
D)25% chance of gaining $2000 and a 75% chance of losing nothing
Identify the type of risk that is the fundament rick that is the fundamental risk factor for fixed-income
securities - correct answer ✔✔a) reinvestment risk
b)liquidity risk
C)interset rate risk
d)market risk
Select the newspaper article that would be likely to result in foreign capital moving out of a country -
correct answer ✔✔A) new taxes on foreign direct investment
b)corp taxes reduced
c)government re-elected for a 4th consecutive term
d)international ranking of domestic level of education
A MF reports a 10year compound rate of return of 15%. the fund changes a front end load of 4% charges
and has a 2.3% management expense ratio. Indicate the other factors that have been taken into account
in calculating the 15% return - correct answer ✔✔1) management fees&expenses
2)the front end load
3)the reinvestment of all dividends
4)transfer fees
a)1&2
b)2&3
, c)3&4
D)1&3
Select the list that contains items typically classified as current assets on the statement of financial
position - correct answer ✔✔a)cash,accused charges & accounts receivable
b)cash,inventories & depreciation
c)cash,accounts receivable&retained earnings
D)cash,accounts receivable &retained
A client places a purchase order for ABC Equity Fund. The sales rep is are of a similar fund XYZ Fund
that's shown almost identical performance & management expense ratio but has a higher trailer fee. The
sales rep counsels the client the purchase XYZ Fund. Identify the aspect of standard B-Trustworthiness,
Honesty & fairness that the rep violated - correct answer ✔✔a)complete & accurate info
b)repeat for clients assets
c)priority of clients interests
D)disclosure
Your client, Mr. Leblanc tells you that for tax purposes he would like to increase the Canadian dividend
income he receives. Assuming that the fund is within his risk profile, which find would you recommend
to Mr. Leblanc - correct answer ✔✔A)a blue chip equity fund
b)equity growth fund
c)equity index fund that uses futures contracts
d)global dividen equity fund
A MF rep is under pressure to meet certain sales objectives. However he consistently ignores these
quotes when making client recommendations which standard of conduct has he followed - correct
answer ✔✔a)obligation to keep client info confidential
b)provision of appropriate cautions for potentially unsuitable investments
c)the maintenance of a high standard of professional knowledge
D)obligations to put the clients interests first
