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IFC Practice Questions

Investment Funds in Canada (IFC) Exam

Last Update 4 days ago
Total Questions : 447

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Our Investment Funds in Canada practice questions crafted to reflect the domains and difficulty of the actual exam. The detailed rationales explain the 'why' behind each answer, reinforcing key concepts about IFC. Use this test to pinpoint which areas you need to focus your study on.

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Question # 1

What type of benefit plan has a final benefit that is dependent on the investment returns within the plan?

Options:

A.  

Career average plan

B.  

Defined contribution plan

C.  

Final average plan

D.  

Flat benefit plan

Discussion 0
Question # 2

Reagan has accepted a role to be the Chief Revenue Officer of a charitable organization. She is currently registered as a Dealing Representative for Sunshine Financial Services.

Which of the following would apply to her?

Options:

A.  

The dealer will closely monitor her sales activities to ensure any clients from the charity are not getting a discount on potential fees.

B.  

Holding both positions at the same time is a violation of securities industry rules and regulations .

C.  

Reagan is not required to inform her dealer of this outside activity if none of her colleagues from the charity become clients.

D.  

The regulator will limit her from providing financial services to anyone associated with the charity.

Discussion 0
Question # 3

When reviewing a company's balance sheets, what ratio best determines whether their borrowing is excessive?

Options:

A.  

The cash flow from operations / total debt ratio.

B.  

The debt / equity ratio.

C.  

The interest coverage ratio.

D.  

The price / earnings ratio.

Discussion 0
Question # 4

Josephine is a Dealing Representative with Sunshine Mutual Funds Inc. for over 10 years. Her brother Jonathan has an account with Sunshine Mutual Funds Inc., too. Jonathan wants Josephine to manage his

portfolio and make investment decisions on his behalf. Jonathan trusts his sister to make better investment choices than he can. He also wants to give Power of Attorney (POA) to Josephine so she can have full authority over his account.

How can Josephine respond to her brother's request?

Options:

A.  

Josephine can accept a limited PO

A.  

B.  

Josephine cannot accept the POA as she is not the immediate family.

C.  

Josephine can accept the POA as it is an exception that is permitted under the MFDA rules.

D.  

Josephine should accept the POA after making a full disclosure to her dealer about the PO

A.  

Discussion 0
Question # 5

Which type of fixed income fund has a short duration, with the objectives of preserving capital and generating better current income than a money market fund?

Options:

A.  

Preferred dividend fund

B.  

Mortgage fund

C.  

Short-term bond fund

D.  

T-bill fund

Discussion 0
Question # 6

You ask a new client, Brad, "what are your financial obligations and what are your assets?" What information are you trying to gather in order to comply with the know your client (KYC) rule?

Options:

A.  

net worth

B.  

marginal tax rate

C.  

income and cash-flow

D.  

tax consequences

Discussion 0
Question # 7

Which of the following actions by the federal government or the Bank of Canada is an example of monetary policy?

Options:

A.  

increasing taxes

B.  

increasing transfer payments to particular provinces

C.  

increasing the cost of borrowing

D.  

increasing spending on road construction and maintenance

Discussion 0
Question # 8

A self-directed investor bases stock purchase decisions on internet recommendations and stock tips, believing this provides the most accurate information. What is the investor's behavioural bias?

Options:

A.  

Endowment

B.  

Availability

C.  

Representativeness

D.  

Overconfidence

Discussion 0
Question # 9

Which exchange in Canada deals exclusively with financial and equity futures and options?

Options:

A.  

The Montreal Exchange

B.  

The Toronto Stock Exchange

C.  

Canadian Securities Exchange

D.  

The TSX Venture Exchange

Discussion 0
Question # 10

The ZZZ Money Market Fund has a 7-day yield of 0.05%. What is the current yield for the fund? Round your answer to two decimal places.

Options:

A.  

1.61%

B.  

2.22%

C.  

0.05%

D.  

2.61%

Discussion 0
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