[Dec-2023] CIFC Exam Dumps Pass with Updated 2023 Canadian Investment Funds Course Exam
Free CIFC Exam Dumps to Pass Exam Easily
NEW QUESTION # 13
Lior is considering an investment that gains exposure to companies that trade on the Toronto Stock Exchange (TSX). He is not sure what the differences are between a Canadian equity fund and a Canadian dividend fund.
What would you tell him?
- A. Equity funds hold common shares while dividend funds hold only preferred shares.
- B. Dividend funds tend to be less volatile and lower risk than equity funds.
- C. Dividend funds generate tax-preferred income while income from equity funds is fully taxable.
- D. Equity funds are more appropriate than dividend funds if Lior requires a steady flow of income.
Answer: B
NEW QUESTION # 14
Eleanora receives a $500 eligible Canadian dividend from her mutual fund. Her federal marginal tax rate for the year is 29%. Assuming the enhanced gross-up of 38% and a federal dividend tax credit of 15.02%, how much federal tax will she pay on her dividend?
- A. $115.40
- B. $96.46
- C. $69.90
- D. $189.16
Answer: B
NEW QUESTION # 15
Your clients, Philip and Helen, have a disabled son, Alex, age 22. They want to set up a registered disability savings plan (RDSP) for Alex and have asked you for some information.
Which statement is TRUE?
- A. Philip and Helen's contributions are tax-deductible.
- B. Philip and Helen's contributions are refundable to them.
- C. Alex must quality for the disability tax credit.
- D. There is no annual or lifetime maximum limit on contributions.
Answer: C
NEW QUESTION # 16
You are collecting know your client (KYC) information for your new client, Yael. She has recently accepted an early retirement package from her employer and has $100,000 to invest. She is looking for an investment that will provide income to help pay her ongoing monthly expenses. Without this extra income, she would have trouble paying her bills. From your discussions, Yael understands that markets fluctuate and says she is comfortable with high risk. Which of the following would be a suitable investment?
- A. global equity fund
- B. mortgage fund
- C. money market fund
- D. Canadian equity index fund
Answer: B
NEW QUESTION # 17
What purpose does it serve for non-money market mutual funds to hold money market instruments?
- A. They ensure that the fair market value of a mutual fund will not drop below a minimal market value.
- B. Money market instruments primarily generate investment income that provides investors with preferential tax treatment.
- C. If the portfolio manager has an immediate need for cash, money market instruments are relatively easy to liquidate.
- D. They are purchased by non-money market funds to satisfy the regulatory requirement of fund diversification.
Answer: C
NEW QUESTION # 18
Dakota is a Dealing Representative with Harvest Wealth Inc., a mutual fund dealer. Dakota starts a marketing campaign to contact prospective new clients and increase sales with existing clients. Which of the following CORRECTLY describes activities that Dakota can engage in under her marketing campaign?
- A. Dakota can send promotional emails to clients who have opted in to receive commercial electronic messages (CEMs).
- B. Dakota can make telemarketing calls to clients who have opted in to receive commercial electronic messages (CEMs).
- C. Dakota can send promotional emails to clients who have opted into Harvest Wealth's Do Not Call List
- D. Dakota can make telemarketing calls to clients who are listed on the National Do Not Call List
Answer: A
NEW QUESTION # 19
Every February, Reginald, a Dealing Representative, feels pressured by his Manager to generate new registered retirement savings plans (RRSP) and contributions to assist the branch in meeting broader business targets. Reginald is nearing the end of February, and he has a meeting with a new client, Orel. Orel wants to open a tax-free savings account (TFSA) to develop emergency savings because he does not want to worry about his withdrawals being taxed. Reginald suggests that if Orel were to contribute to an RRSP first, then the resulting tax savings could be used to fund a new emergency account.
In relation to account suitability, what can be said about Reginald's advice?
- A. Recommending an investment solution that addresses two needs is putting Reginald's client's interest first
- B. By convincing Orel to contribute an RRSP, instead of a TFSA, Reginald has put his client's interest first.
- C. Reginald is putting the client's interest first by informing Orel why he should change his purpose for investing.
- D. Based on Orel's stated need, recommending an RRSP contribution is unsuitable.
Answer: D
NEW QUESTION # 20
Exchange traded funds (ETFs) that track an index and index mutual funds have many similarities. However, what is a major difference between these two products?
- A. ETFs can be purchased continuously throughout the trading day while index funds can only be bought or sold at the end of the day.
- B. ETFs do not have management fees since they are exchange traded while index funds do incur such fees.
- C. While ETFs are prone to tracking errors, index funds are perfectly aligned with their underlying index.
- D. The market price of ETFs always matches the underlying basket of securities while there can be a discrepancy in pricing index funds.
Answer: A
NEW QUESTION # 21
Pierre buys a call option on a stock. What is the implication of this transaction?
- A. Pierre is obligated to buy the stock if the option is exercised.
- B. Pierre is obligated to sell the stock if the option is exercised.
- C. Pierre has the right to buy the stock if he exercises the option.
- D. Pierre has the right to sell the stock if he exercises the option.
Answer: C
NEW QUESTION # 22
Maxine is a portfolio manager who 15 years ago, purchased 100 shares of Never2Tacky, a social media corporation for Aspirations Global Technology Fund. She purchased the stock when it was trading at $10. Last year, the peak market price was $120. Presently, it is trading at $99. News agencies are now reporting that additional regulations regarding social media companies are about to be agreed upon by G7 countries. Maxine is concerned the market value of Never2Tacky is going to drop. She buys a put option with an exercise price of $95 with an expiry of 9 months.
What type of strategy is Maxine using?
- A. Hedging
- B. Speculating
- C. Passively managing
- D. Modern portfolio theory
Answer: A
NEW QUESTION # 23
What type of mutual fund can invest in specified derivatives and forward contracts for grains, meats, metals, energy products, and coffee?
- A. global equity fund
- B. specialty fund
- C. commodity pool
- D. labour-sponsored investment fund
Answer: C
NEW QUESTION # 24
Which information is typically included in the Letter of Engagement?
- A. Investment Objective
- B. Process for complaints
- C. Payee for deposits
- D. Client's responsibilities
Answer: D
NEW QUESTION # 25
Pacari is a Dealing Representative with Cavalry Investments, a mutual fund dealer. Pacari's client, Darsha, is a long-time customer and an elderly widow. Darsha depended on her husband, for financial decisions before he passed. Pacari has also noticed that Darsha's capacity seems to be declining over the years. Luckily, with Pacari's help, Darsha has been managing her finances well. However, Darsha's daughter has been getting involved recently and has even tried to enter trades without Darsha's authorization. Pacari is particularly concerned about the last transaction for Darsha's account: a very large redemption. Pacari fears that Darsha has become a victim of financial exploitation and he raises his concerns with his dealer Cavalry. Which of the following statements about how Cavalry may proceed is CORRECT?
- A. Cavalry must proceed with the redemption because temporary and permanent holds are not permitted.
- B. Cavalry must place a temporary hold on Darsha's account to disallow all transactions for the account.
- C. Cavalry can place a temporary hold on Darsha's account to temporarily disallow the redemption.
- D. Cavalry can place a permanent hold on Darsha's account and disallow all future transactions.
Answer: C
NEW QUESTION # 26
Which of the following statements describes a feature of the Home Buyers' Plan (HBP)?
- A. To qualify- as a first-time home buyer you or your spouse must never have previously owned a home
- B. Once you are required to repay the amounts back to your RRSP. any missed or incomplete payments are subject to tax.
- C. A qualifying home must be purchased by December 31 of the year of withdrawal.
- D. If you have a spouse or common-law partner, each of you can withdraw up to JE50.000 from your registered retirement savings plans (RRSPs).
Answer: B
NEW QUESTION # 27
Wilma has always used the services of a tax preparation firm to file her taxes but is skeptical that she has really benefitted. This year she plans to file her own taxes for the first time.
What would be useful for her to know?
- A. Wilma's tax deductions permit her to reduce her tax payable dollar-for-dollar.
- B. Wilma's non-refundable tax credits may only reduce her taxable income dollar-for-dollar.
- C. Wilma's top marginal tax rate will be applied to every taxable dollar when her tax return is filed.
- D. Wilma's marginal tax rate may be lowered when tax deductions are applied to her total income.
Answer: D
NEW QUESTION # 28
Karen's know your client (KYC) profile corresponds to someone who has a long time horizon, is comfortable with risk and volatility, and is primarily interested in growth. She watches the daily movements of the Toronto Stock Exchange (TSX) and wants a mutual fund that will closely match what she sees.
What kind of mutual fund would be BEST for her?
- A. Canadian bond fund
- B. Canadian small capitalization equity fund
- C. Canadian equity index fund
- D. Canadian dividend fund
Answer: C
NEW QUESTION # 29
Last year Peter's earned income from employment was $50,000.
Last year, after receiving a $2 per share in dividends from 500 shares in ABC Inc., a publicly-traded Canadian corporation, he sold his shares. The sale resulted in a capital gain of $15,000.
Based on the tax rates mentioned above, what is Peter's net federal tax liability for the year? (Round to 2 decimal places).
- A. $9,193.69
- B. $9,953.30
- C. $9,113.53
- D. $9,696.15
Answer: A
NEW QUESTION # 30
The owners of Underground Airways Ltd. want to take their privately owned corporation public through an initial public offering (IPO). They are speaking to a specialist from an investment dealer to determinewhether it would be advisable to become listed on a stock exchange or the over-the-counter (OTC) market.
In comparing the two options, which of the following considerations is TRUE?
- A. A stock exchange listing would provide Underground with greater market exposure and public confidence than listing on the OTC market.
- B. Underground would still be directly involved in the trading of their shares on either market.
- C. If Underground chose to list on the OTC market, there would be no secondary market available for investors.
- D. Underground would be subject to less stringent listing requirements if they chose the stock exchange as compared to the OTC market.
Answer: A
NEW QUESTION # 31
Stan, a portfolio manager, is looking at two steel companies as potential investments. Truesteel Inc. has a current ratio of 2:1 while Strongco Ltd. has a current ratio of 0.8:1.
What could this information indicate?
- A. The stock market is more optimistic about the prospects for Truesteel than Strongco.
- B. It appears that Truesteel is more profitable than Strongco.
- C. Truesteel is better able to meet its short term financial obligations than Strongco.
- D. Stronqco is reiving less on debt financing than Truesteel.
Answer: C
NEW QUESTION # 32
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