- Study guides, Class notes & Summaries

INVESTMENT FUNDS IN CANADA Questions and Correct Answers

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24 pages

Written in 2025/2026

Grade A+

UniTests

INVESTMENT FUNDS IN CANADA EXAM QUESTIONS AND CORRECT ANSWERS LATEST VERSION 2024 ( FULLY SOLVED) A mutual fund sales representative is under pressure to meet certain sales objectives. However, he consistently ignores these quotas when making client recommendations. Which standard of conduct has he followed? a) The obligation to keep client information confidential. b) Provision of appropriate cautions for potentially unsuitable investments. c) The maintenance of a high standard of profe...

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19 pages

Written in 2024/2025

Grade A+

TutorJosh

Equity Mutual Funds - Answer -invest in the common and preferred shares of publicly-traded companies. -have the goal of earning capital gains, sometimes with a current dividend income component. -the riskiest of the three basic mutual fund types—money market, fixed-income, and equity funds -suitable primarily for clients with longer investment time horizons. -make no specific attempt to preserve capital -verage return performance of equity funds parallels that of the TSX Index Can...

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6 pages

Written in 2026/2027

Grade A+

COCOSOLUTIONS

Fixed Income Security Examples - Answer -bonds (gov and corporate) -guaranteed investment certificates (GICs), -Treasury bills (T-bills) bankers' acceptances -commercial paper. Equity Securities Examples - Answer -common shares -preferred shares Fixed-Income Securities - Answer -debt issued by an entity in the financial market and sold to investors. -loans that investors make to governments and corporations. -represent the debt of the issuing entity and investors become ...

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15 pages

Written in 2026/2027

Grade A+

COCOSOLUTIONS

Conservative Mutual Fund Product Examples - Answer -money market mutual funds (lowest return) -mortgage mutual funds -bond funds -other fixed-income mutual fund Money Market Mutual Funds - Answer -invest at least 95% of their total net assets in money market securities. -short term, highly liquid fixed income investments of varying maturities of 364 days or less (so less than 1 year) that are readily convertible into cash. -two important differences that distinguish money market ...

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7 pages

Written in 2026/2027

Grade A+

COCOSOLUTIONS

holding period return - Answer A transactional rate of return measure that takes into account all cash account closing fees - Answer A charge levied by some mutual funds when clients close their accounts. accredited investor - Answer An individual or institutional investor who meets certain minimum requirement relating to income, net worth, or investment knowledge. Also referred to as a sophisticated investor. accumulation plan - Answer A plan offered by a mutual fund compan...

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48 pages

Written in 2026/2027

Grade A+

COCOSOLUTIONS

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,...

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14 pages

Written in 2026/2027

Grade A+

COCOSOLUTIONS

1. Money market 2. Mortgage 3. Bond 4. Balanced 5. Dividend Funds 6. Equity Funds 7. Real Estate Funds 8. Specialty Funds $-家－007-中－喜－平－地－特 - Answer Rank all of the different types of MUTUAL FUNDS from lowest to highest risk (8) riskier than bond funds, less risky than equity mutual - Answer The returns on preferred dividend funds are ______ than bond funds but _______ than equity mutual funds unique risk - Answer If a security's price is affe...

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6 pages

Written in 2026/2027

Grade A+

COCOSOLUTIONS

Mutual Fund - Answer -an investment vehicle operated by an investment company that pools contributions from investors and invests these proceeds into a variety of securities, including stocks, bonds and money market instruments -individuals who contribute money become share or unitholders in the fund and share in the income, gains, losses and expenses the fund incurs in proportion to the number of units or shares that they own. -professional money managers manage the assets of the fund by ...

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12 pages

Written in 2026/2027

Grade A+

COCOSOLUTIONS

Netherlands in 1774 - Answer When was the start of mutual funds? 1) professionally managed, 2) diversified portfolio of securities at 3) low cost - Answer How mutual funds solve problem investors? Fixed Trust (1890s) - Answer First investment funds available to general public? Closed-End Fund - Answer Firm would issues shares to investors. Corporations who make investments Open-Ended Mutual Funds - Answer Modern mutual fund 1920s. They are not traded on stock exchange,...

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3 pages

Written in 2026/2027

Grade A+

COCOSOLUTIONS

1. mobile 2. sensitive to environment 3. scarce - Answer 3 characteristics of capital Fiscal Polocy - Answer ___ refers to levels of tax and government spending a) source of capital b) retail, institutional, and foreign investors - Answer The only a)___ is savings; b)___ +___+___ are a significant source of investment capital individuals, businesses, governments - Answer The users of capital are 1) 2) 3) t_bills marketable_bonds CSBs <- CanadaSavingsBonds CPBs &...

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3 pages

Written in 2026/2027

Grade A+

COCOSOLUTIONS

Behavioral Finance - Answer A field of study that combines psych+econ to explain why/how investors act. The application of psych to understand human behavior in finance/investing Standard Finance - Answer Is characterized by how investors SHOULd behave Behavioral Biases - Answer Systemic Errors in financial judgement of imperfections in the perception of economic reality 1. Cognitive-subconscious mental procedures , anchoring 2. Emotional - arises spontaneously - Answer Wha...

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4 pages

Written in 2026/2027

Grade A+

COCOSOLUTIONS

95% - Answer According to the Canadian Investment Fund Standards Committee (CIFSC), money market funds must invest at least _____ of their total net assets in money market securities. short-term highly liquid na 364 days or less maturity 1. Money Market Investments are NOT INSURED by CDIC 2. Money Market Funds may fluctuate in value with interest rates - Answer What are the 2 main differences of money-market fund investments from traditional banking counterparts? $$$$$$$$$$$$$$$ ...

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3 pages

Written in 2026/2027

Grade A+

COCOSOLUTIONS

True Value - Answer -if the "true" value differs from the current market price, this is an indication of a buying or selling opportunity -comes form information about earnings (or profits) of these companies -the value of a share is primarily influenced by the company's expected future earnings Financial Statements - Answer -Financial statements of publicly traded companies in Canada are produced according to International Financial Reporting Standards (IFRS). IFRS requires a...

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8 pages

Written in 2026/2027

Grade A+

COCOSOLUTIONS

HOW HAS THE MUTUAL FUND HISTORY EVOLVED? *Remember: 'Mutual funds Evolve with Advantages, Canada Grows Early, Banks Expand' or EACEBE * - Answer - EVOLUTION: Significant growth in # of funds, popularity with small investors, & assets under management - ADVANTAGES: Professionally managed, diversified portfolios, low cost, accessibility - CANADIAN MF Growth: Rapid expansion 50s-60s, slow 70s, resurgence 80s-90s - early GROWTH: Assets doubling to nearly $1B - BANK INVOLVEMENT: C...

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26 pages

Written in 2026/2027

Grade A+

COCOSOLUTIONS

Current Account - Answer records exchanges of goods between Canada and foreigners ROE RATIO - Answer PROFIT/EQUITY EPS - Answer PROFIT/NUMBER OF COMMON SHARES OUTSTANDING DIVIDEND YIELD - Answer Annual Dividend / Stock Price P/E RATIO - Answer ratio of stock price to earnings per share MEASURING PERFORMANCE - Answer ENDING NAVPS-BEGGINING NAVPS X100/BEGGINING NAVPS PURCHASE PRICE - Answer NAVPS/100%-SALES CHARGE INFLATION - Answer CPI CURRENT PERIOD- ...

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12 pages

Written in 2026/2027

Grade A+

COCOSOLUTIONS