Free Access IFSEInstitute.CIFC.v2025-02-26.q117 Practice Test (Page 7)

Question 26

Which among the following plans includes a provision that places a maximum limit on the amount that can be withdrawn during a calendar year?

A.Life Income Fund (LIF)

B.Registered Retirement Savings Plan (RRSP)

C.Registered Retirement Income Fund (RRIF)

D.Deferred Profit Sharing Plan (DPSP)

Question 27

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.Passively managing

B.Modern portfolio theory

C.Speculating

D.Hedging

Question 28

Which of the following statements is true when comparing fund of funds to traditional mutual funds?

A.Fund of funds have higher fees than traditional mutual funds since there are two sets of management fees.

B.Fund of funds have more asset class options available and lower fees than traditional mutual funds.

C.Since fund of funds invest primarily outside Canada, they will have higher fees than traditional mutual funds.

D.Fund of funds have more fee structure options available and lower fees than traditional mutual funds.

Question 29

David had $10,000 in his investment account with Dynamic Investments, a mutual funds dealer. On June 28, David wants to buy 500 units in ABC Canadian Dividend Fund that has a Net Asset Value Per Unit (NAVPU) of $14.10. His friend Robert suggests that he may get a better price if he used the strategy of dollar-cost averaging. David then instructs his Dealing Representative to place a purchase order for 100 units on the first of every month starting July 1st for the next 5 months.
The orders are executed at the following NAVPUs.
July 01, $14.00
Aug. 01, $14.50
Sep. 01, $15.00
Oct. 01, $14.25
Nov. 01, $16.50
Did David get a better purchase price following the dollar-cost averaging strategy compared to making a lump-sum purchase of 500 shares on Jun 28, 20xx?

A.David realizes that Dollar cost averaging is the best strategy for getting lower prices.

B.David got his 500 units at the same price as the lump sum price he would have paid.

C.David got his 500 units at a higher price than the lump sum price he would have paid

D.David got his 500 units at a lower price than the lump sum price he would have paid.

Question 30

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

A.risk-free where the mortgages are National Housing Act (NHA) insured

B.typically monthly distributions of interest

C.if interest rates fall, the mutual fund's net asset value per unit (NAVPU) will decline

D.suitable only for high risk investors

Other Version: 1358IFSEInstitute.CIFC.v2025-11-01.q102; 1519IFSEInstitute.CIFC.v2024-12-28.q114; 2141IFSEInstitute.CIFC.v2024-05-13.q115

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Question 26

Question 27

Question 28

Question 29

Question 30

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