Online Access Free CIFC Practice Test

Saheed is a retiree who is considering splitting his pension income with his wife, Minu.
Which of the following outcomes may occur if he shares his pension benefits?

• A.This is a form of tax evasion and is therefore considered illegal based on income tax legislation.
• B.Regardless of how much income each person reports, the total amount of income taxes will not change.
• C.Minu will be exposed to a pension adjustment (PA) if she receives income from his pension.
• D.Whether the couple saves on income tax will be dependent on Minu's marginal tax rate.

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.Trailer and brokerage fees are charged separately from the MER.
• B.Mutual funds are required to calculate the MER on a daily basis.
• C.The MER reflects the percentage of each dollar of fund assets that is used to pay for management services.
• D.Mutual fund performance is not impacted by the MER since rates of return are published net of fees.

Jacinta is a Dealing Representative with WealthSource Partners Inc., a mutual fund dealer registered in Ontario. Jacinta meets with her friend Saabir, who is a licensed insurance agent. Saabir asks Jacinta for a list of Jacinta's clients so that Saabir can reach out to them to ensure that their insurance needs are being met.
Which of the following statements about Jacinta sharing the list with Saabir is CORRECT?

• A.If Jacinta shares the list with Saabir without obtaining the clients' prior consent, she will be in breach of the Personal Information Protection and Electronic Documents Act (PIPEDA).
• B.If Saabir promptly discloses that he has collected the clients' personal information from Jacinta without their consent, Saabir can use the information for a new stated purpose.
• C.If Jacinta determines that there is a reasonable purpose for sharing the list with Saabir, she can disclose the information to Saabir without obtaining prior consent from the clients.
• D.If Saabir obtains prior consent from Jacinta to use the clients' personal information for a reasonable purpose, Saabir can contact the clients to inquire about their insurance needs.

Lucas is 60 years old and continues to work. He presently is a plan holder of a registered retirement savings plan (RRSP). He is considering changing his RRSP to a registered retirement income fund (RRIF).
Which of the following statements is CORRECT?

• A.There is no minimum age to be an annuitant to a RRIF.
• B.Minimal withdrawals are required to start in the current calendar year his RRIF was established.
• C.Investments that qualify as an eligible investment for a RRIF are different than for an RRSP.
• D.Once he changes his RRSP to a RRIF, his unused total RRSP contribution room is lost.

Which of the following characteristics about mortgage mutual funds is CORRECT?

• A.suitable only for high risk investors
• B.typically monthly distributions of interest
• C.if interest rates fall, the mutual fund's net asset value per unit (NAVPU) will decline
• D.risk-free where the mortgages are National Housing Act (NHA) insured