Online Access Free IFC Practice Test

Suzie received a T3 for investment income earned on her investment in DEW Canadian Balanced Fund. In what account type is this investment held?

• A.RESP.
• B.Non-registered.
• C.RRSP.
• D.TFSA.

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 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.
• B.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.
• C.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.
• D.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).

Jeremy is reviewing the prospectus of a Canadian equity fund and notes the fund permits the use of derivatives. The stated objective of the derivative use is bet on the future movement of the market to increase the fund's returns. What should Jeremy be aware of regarding this fund?

• A.The fund limits derivatives up to 5% of the value of the portfolio
• B.Derivatives are used as a portfolio hedge
• C.Derivatives are used for speculation
• D.The fund limits derivatives up to 15% of the value of the portfolio

The Corporation Group is seeking financing for the purchase of new equipment for a planned expansion.
They want to use the funds for a period of five years. They do not want to pledge any of their existing assets as security or extend shares to any of their debtors. Additionally, they want the privilege of repaying borrowed funds at any time if they so choose. What is the most ideal fixed-income security they should issue to raise this capital?

• A.Convertible bonds
• B.Commercial paper
• C.Treasury bills
• D.Callable debentures

When selecting an investment to add to a portfolio, what feature would reduce the overall risk?

• A.High standard deviation
• B.High beta
• C.Low variance
• D.Low alpha