2023 Latest 100% Exam Passing Ratio - CIFC Dumps PDF
Pass Exam With Full Sureness - CIFC Dumps with 102 Questions
NEW QUESTION # 49
Jabir begins the registration process with his new dealer Prosper Wealth Inc. Jabir is excited about his new career and eager to start calling clients, opening new accounts, and selling investments. Which of the following CORRECTLY describes when Jabir will be eligible to open new client accounts and sell investments?
- A. Upon passing the proficiency course
- B. Upon formal confirmation from the regulator
- C. Upon registration application by the dealer
- D. Upon employment with the dealer
Answer: B
NEW QUESTION # 50
Danica is looking for a mutual fund to hold in her non-registered account that provides a regular stream of income with potential for capital growth. She is having difficulty distinguishing between bond funds and dividend funds. Which of the following statements is TRUE?
- A. Bond fund distributions receive more favorable tax treatment than that of dividend funds.
- B. When interest rates rise, the net asset value per unit (NAVPU) of bond funds decreases; whereas with dividend funds it rises.
- C. The return of dividend funds relies only on interest rates; whereas with bond funds, the return also depends on the general direction of stock markets.
- D. Bond funds receive fixed interest payments from most of their investments.
Answer: D
NEW QUESTION # 51
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. While ETFs are prone to tracking errors, index funds are perfectly aligned with their underlying index.
- B. ETFs do not have management fees since they are exchange traded while index funds do incur such fees.
- C. The market price of ETFs always matches the underlying basket of securities while there can be a discrepancy in pricing index funds.
- D. ETFs can be purchased continuously throughout the trading day while index funds can only be bought or sold at the end of the day.
Answer: D
NEW QUESTION # 52
Which of the following statements best describes dollar-cost averaging?
- A. It is buying a set dollar amount of a mutual fund on a regular basis
- B. It is the strategy of purchasing a set number of units of a mutual fund on a regular basis.
- C. It is making lump-sum purchases when the market price for a mutual fund is low.
- D. It is a type of systematic withdrawal program.
Answer: A
NEW QUESTION # 53
Ken is a member of his employer's Defined Benefit Pension Plan (DBPP). Which of the following statements about Ken's plan is CORRECT?
- A. Income received from the plan is eligible for pension income splitting even if Ken retires before 65.
- B. Contributions to the plan do not result in a Pension Adjustment (PA) for Ken.
- C. The amount Ken receives in retirement depends on the performance of the investments he has selected within the plan.
- D. The amount that Ken will receive at retirement is not guaranteed.
Answer: A
NEW QUESTION # 54
Sarah and Kyle are a married couple. They are both 34 years of age and work as teachers. Their combined annual income is $130,000. They are able to save $800 each month. They own a home worth $340,000 with a
$120,000 mortgage. Since they work for the same employer, they have the same defined benefit pension plan.
Other than a tax-free savings account (TFSA) in Kyle's name with $5,000, they do not have any other assets.
They are avid sailors and want to save towards a purchase of a sailboat. For the type of sailboat they want, they estimate it should cost around $65,000. They want you to recommend an investment for their monthly savings to help them achieve their goal faster.
What question should you ask them next?
- A. How much do you make individually each year?
- B. What is your net worth?
- C. What is your investment objective for these savings?
- D. How would you feel if you lost part of your money in the short-term?
Answer: C
NEW QUESTION # 55
Which of the following statements is true when comparing fund of funds to traditional mutual funds?
- A. Fund of funds have more asset class options available and lower fees than traditional mutual funds.
- B. Since fund of funds invest primarily outside Canada, they will have higher fees than traditional mutual funds.
- C. Fund of funds have more fee structure options available and lower fees than traditional mutual funds.
- D. Fund of funds have higher fees than traditional mutual funds since there are two sets of management fees.
Answer: D
NEW QUESTION # 56
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 marginal tax rate may be lowered when tax deductions are applied to her total income.
- B. Wilma's tax deductions permit her to reduce her tax payable dollar-for-dollar.
- C. Wilma's non-refundable tax credits may only reduce her taxable income dollar-for-dollar.
- D. Wilma's top marginal tax rate will be applied to every taxable dollar when her tax return is filed.
Answer: A
NEW QUESTION # 57
Frederic recently sold his units in a US dollar (USD) denominated mutual fund. He wants to convert the proceeds back to Canadian dollars (CAD). If he received proceeds of $1,200 USD from the sale and the exchange rate is $1 CAD for $0.99 USD, how much will Frederic receive in Canadian dollars?
- A. $1,200.00
- B. $1-188.00
- C. $1,320.00
- D. $1, 12.12
Answer: D
NEW QUESTION # 58
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 make telemarketing calls to clients who are listed on the National Do Not Call List
- B. Dakota can send promotional emails 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 have opted in to receive commercial electronic messages (CEMs).
Answer: B
NEW QUESTION # 59
Your client, Rinaldo, wants to know more about the fees associated with his mutual funds. What can you tell him about a mutual fund's management expense ratio (MER)?
- A. Mutual fund performance is not impacted by the MER since rates of return are published net of fees.
- B. Mutual funds are required to calculate the MER on a daily basis.
- C. Trailer and brokerage fees are charged separately from the MER.
- D. The MER reflects the percentage of each dollar of fund assets that is used to pay for management services.
Answer: D
NEW QUESTION # 60
During the calendar year, Firmansyah received a $1,800 eligible dividend from a large Canadian bank and a foreign, dividend from his The USD/CAD exchange rates is 1.3605.
Firmansyah's federal marginal tax bracket is 29%. The enhanced dividend gross-up rate is 38% and the federal dividend tax credit rate for eligible dividends is 15%.
What federal tax liability will be due from the investment income?
- A. $870.00
- B. $348.00
- C. $522.00
- D. $695.76
Answer: D
NEW QUESTION # 61
What information does Fund Facts provide to potential investors?
- A. What the mutual fund is currently investing in.
- B. How to calculate the taxes owed from investment income.
- C. The portfolio management strategy that is used.
- D. The remuneration paid to the Independent Review Committee.
Answer: A
NEW QUESTION # 62
Greg, one of your clients, has been advised by a friend to invest in open-end mutual funds. He is not sure about the differences between open and closed-end funds.
What would you tell Greg about open-end funds?
- A. The number of units is not fixed, and varies with investor demand and redemption orders.
- B. Units are bought and sold amongst the unitholders.
- C. Investors holding open-end funds can buy and sell their mutual funds anytime the stock market is open.
- D. Initial shares in the mutual fund are allotted through an initial public offering (IPO)
Answer: A
NEW QUESTION # 63
Yesterday, Mariana purchased mutual funds for the first time from Diablo, who is a Dealing Representative for Horizon Financial. When Mariana mentions to her friend Marcus that she just started to invest, Marcus confides that he experienced losses from mutual fund investing. Her initial feelings of excitement have now changed to worry and regret. She wished she had talked to her friend before investing and wonders if she can change her mind.
Which statement regarding the right of withdrawal applies?
- A. How the right of withdrawal can be applied is determined by the Mutual Fund Dealers Association of Canada's conduct rules.
- B. Before Mariana can cancel her order, she must wait two business days to pass before she can cancel her order.
- C. The right of withdrawal is based on the securities act legislation within the jurisdiction the purchase occurred.
- D. The Canadian Securities Administrators have instituted national instruments regarding Mariana's right to cancel her order.
Answer: C
NEW QUESTION # 64
Iliana owns 1,000 participating preferred shares in the First Canadian Bank. Which of the following features are characteristic of her investment?
- A. Iliana has a right to share in the bank's net profits over and above the specified dividend rate.
- B. Iliana is able to vote at the annual general meeting and elect members of the board of directors.
- C. Iliana can convert her preferred shares to common shares at a fixed price and within a specified time period.
- D. Iliana has the right to purchase more preferred shares in the company before common shareholders.
Answer: B
NEW QUESTION # 65
Which statement regarding the underwriting process and over-the-counter (OTC) markets is CORRECT?
- A. Many new stock issues that are underwritten by securities firms are first listed on a stock exchange before they are sold over-the-counter.
- B. During the underwriting process investment bankers raise investment capital from investors on behalf of corporations and governments issuing securities.
- C. The disclosure standards for stock exchanges are not as stringent as those imposed by the OTC market.
- D. Corporations must have their shares listed both on an exchange and the OTC market during the underwriting process.
Answer: B
NEW QUESTION # 66
Ellen and her only son Jeff live on the family farm with her father George. Jeff is five years old and Ellen has decided that it is time to start saving for Jeff's post-secondary education. She has called you to ask about registered education savings plans (RESPs).
Which of the following statements is TRUE?
- A. George may open an RESP for Jeff but it will not quality to receive Canada Savings Education Grants (CESGs).
- B. If Jeff qualifies for additional CESG. his CESG lifetime maximum increases to $10,000.
- C. If Jeff decides not to pursue a post-secondary education, he can keep all the CESG but it then becomes taxable.
- D. If Ellen receives the National Child Benefit Supplement (NCBS), Jeff may be eligible for the Canada Learning Bond
Answer: D
NEW QUESTION # 67
Marta is turning 71 years old this year. She will have to convert her registered retirement savings plan (RRSP) to a registered retirement income fund (RRIF). Which of the following statements is TRUE?
- A. She will be subject to annual maximum withdrawal limits.
- B. When she converts her RRSP to a RRIF, she will incur a tax liability.
- C. She will be able to continue contributing to her RRIF and be subject to the same annual limits as her RRSP.
- D. She does not have to withdraw the minimum amount this year.
Answer: D
NEW QUESTION # 68
What type of mutual fund can invest in specified derivatives and forward contracts for grains, meats, metals, energy products, and coffee?
- A. commodity pool
- B. specialty fund
- C. labour-sponsored investment fund
- D. global equity fund
Answer: A
NEW QUESTION # 69
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. Dividend funds generate tax-preferred income while income from equity funds is fully taxable.
- B. Equity funds are more appropriate than dividend funds if Lior requires a steady flow of income.
- C. Dividend funds tend to be less volatile and lower risk than equity funds.
- D. Equity funds hold common shares while dividend funds hold only preferred shares.
Answer: C
NEW QUESTION # 70
What purpose does it serve for non-money market mutual funds to hold money market instruments?
- A. Money market instruments primarily generate investment income that provides investors with preferential tax treatment.
- B. They are purchased by non-money market funds to satisfy the regulatory requirement of fund diversification.
- C. They ensure that the fair market value of a mutual fund will not drop below a minimal market value.
- D. If the portfolio manager has an immediate need for cash, money market instruments are relatively easy to liquidate.
Answer: D
NEW QUESTION # 71
Which of the following best describes implied needs of your clients?
- A. They are statements made by clients expressing the desire for lower commissions.
- B. They are needs reflected by statements made by clients regarding problems and dissatisfactions.
- C. They are statements of wants and needs made by clients.
- D. They are statements made by you showing readiness to solve a client's problem.
Answer: B
NEW QUESTION # 72
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