IFSE Institute CIFC Dumps – The Sure Way To Pass Exam [Q60-Q74]

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IFSE Institute CIFC Dumps – The Sure Way To Pass Exam

CIFC Exam Questions (Updated 2023) 100% Real Question Answers

Q60. Which of the following statements regarding mutual fund fees is correct?

Redemptions are made from units held by investors to pay trailer fees.

Trailer fees are only paid to mutual fund dealers when a purchase is made.

The mutual fund dealer receives trailer fees based on the value of assets under management.

Trading commissions are paid from the management fee.

Q61. Janine will celebrate her 71st birthday this year. She currently has a lot of money in a personal registered retirement savings plan (RRSP) and knows there are rules about what she can do with those funds. Which of the following is TRUE?

She can convert her RRSP to a locked-in retirement income fund (LRIF).

She can convert her RRSP to a registered retirement income fund (RRIF) this year or by December 31st of next year.

She can take the entire amount in cash, with no tax consequences because her RRSP funds were tax-sheltered.

She can purchase a registered term or life annuity.

Q62. 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?

If Jeff qualifies for additional CESG. his CESG lifetime maximum increases to $10,000.

If Jeff decides not to pursue a post-secondary education, he can keep all the CESG but it then becomes taxable.

George may open an RESP for Jeff but it will not quality to receive Canada Savings Education Grants (CESGs).

If Ellen receives the National Child Benefit Supplement (NCBS), Jeff may be eligible for the Canada Learning Bond

Q63. Faruq is a Dealing Representative with Smart Planning Group, a mutual fund dealer. Faruq meets with his new client, Taline, and learns that she lives on a low, fixed income.
Taline tells Faruq that she wants to maximize her investment returns as high as possible to make up the difference. Taline also indicates that she cannot afford large investment losses because her income is low.
Which of the following CORRECTLY describes how Faruq should assess Taline’s risk profile?

Taline’s risk profile should be “hiqh”” because she is willingto accept risk in order to maximize her investment returns.

Faruq should override the risk that Taline is able to accept because her return expectations cannot otherwise be met.

Faruq should assess Taline’s risk profilebased on the higher of her: (1) risk tolerance and (2) risk capacity

Taline’s risk profile should be”low” because her risk capacityis low and she cannot afford lame investment losses.

Q64. 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?

She will be able to continue contributing to her RRIF and be subject to the same annual limits as her RRSP.

When she converts her RRSP to a RRIF, she will incur a tax liability.

She will be subject to annual maximum withdrawal limits.

She does not have to withdraw the minimum amount this year.

Q65. One of your clients, Harry, has heard that he can defer paying tax on capital gains. He wants to know if what he has heard is correct and if so, how to defer paying taxes on capital gains.
What would you tell Harry?

He should hold profitable investments as long as possible.

He should invest in mutual funds just before the dividend paying date to pick up the dividend.

Harry should buy and sell investments actively.

He should hold unprofitable investments as long as possible.

Q66. 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?

The right of withdrawal is based on the securities act legislation within the jurisdiction the purchase occurred.

Before Mariana can cancel her order, she must wait two business days to pass before she can cancel her order.

How the right of withdrawal can be applied is determined by the Mutual Fund Dealers Association of Canada’s conduct rules.

The Canadian Securities Administrators have instituted national instruments regarding Mariana’s right to cancel her order.

Q67. What type of shares offer its shareholders the opportunity to receive additional dividends if the company’s profit exceeds a stated level?

Redeemable preferred shares

Cumulative preferred shares

Convertible preferred shares

Participating preferred shares

Q68. Which of the following statements describes a feature of the Home Buyers’ Plan (HBP)?

To qualify- as a first-time home buyer you or your spouse must never have previously owned a home

Once you are required to repay the amounts back to your RRSP. any missed or incomplete payments are subject to tax.

A qualifying home must be purchased by December 31 of the year of withdrawal.

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).

Q69. Which of the following statements about registered education savings plans (RESPs) is CORRECT?

Contributions to RESPs are tax deductible.

There is a yearly contribution limit per beneficiary.

RESPs must be collapsed by the end of the 31st year of its starting date

Contributed funds grow tax-free within the plan.

Q70. Nelson is a Dealing Representative with True Wealth Advisors Inc., a mutual fund dealer. Nelson follows proper procedures related to his firm’s Relationship Disclosure Information (RDI). Which of the following CORRECTLY describes how Nelson is permitted to evidence that he satisfied his RDI obligation?

Nelson may retain a copy of the RDI in the client file with detailed notes to confirm that he provided and explained the RDI to the client.

Nelson may deliver the RDI to clients who request it and keep detailed notes of the clients who were provided with the RDI.

Nelson can formalize his relationship under the RDI using a Letter of Engagement that specifies duties, responsibilities, and level of service.

Nelson can record detailed notes which confirm that he provided and explained the Fund Facts to the client within 2 days of the RDI.

Q71. Pierre buys a call option on a stock. What is the implication of this transaction?

Pierre has the right to buy the stock if he exercises the option.

Pierre is obligated to sell the stock if the option is exercised.

Pierre has the right to sell the stock if he exercises the option.

Pierre is obligated to buy the stock if the option is exercised.

Q72. The Mutual Fund Dealers Association of Canada (MFDA) has strict rules concerning conflicts of interest.
Which of the following is TRUE?

Gifts and benefits may be provided to a client if your employer is aware of the benefits and has given approval.

Activities that do not relate specifically to your employer need not be reported.

Only actual conflicts must be reported to your employer. Potential conflicts need not be reported because they have not happened yet.

Borrowing money from a client will always be acceptable provided there is a written contract detailing the nature of the agreement.

Q73. With respect to the tax treatment of dividends received from a taxable Canadian corporation, which of the following statements is CORRECT?

Dividends are taxed the same way interest income is taxed.

Dividends from both preferred and common shares of Canadian corporations receive preferential tax treatment.

Dividends from non-resident corporations receive preferential tax treatment.

Only 50% of dividend income is subject to tax.

Q74. You have been researching Canadian equity mutual funds for a new client. You come across the following information.

What can you conclude from this information?

Chamberlain Equity Fund has lower volatility since its 5-year annualized return is higher.

Fontaine Equity Fund is a better fund because it has a higher quartile ranking.

Fontaine Equity Fund has a lower risk level since its Sharpe Ratio is lower.

Fontaine Equity Fund’s higher MER contributes to its lower 5-year annualized return.

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