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[Hardware] Latest IFC Test Question & IFC Exam Sample Online

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【Hardware】 Latest IFC Test Question & IFC Exam Sample Online

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CramPDF IFC practice test has real IFC exam questions. You can change the difficulty of these questions, which will help you determine what areas appertain to more study before taking your Investment Funds in Canada (IFC) Exam (IFC) exam dumps. Here we listed some of the most important benefits you can get from using our Investment Funds in Canada (IFC) Exam (IFC) practice questions.
CISI IFC Exam Syllabus Topics:
TopicDetails
Topic 1
  • The Modern Mutual Fund: This domain examines mutual fund structures, types, and operations, covering equity, fixed income, balanced, and specialty funds, their legal structures, pricing mechanisms, purchase processes, and associated fees.
Topic 2
  • Understanding Alternative Managed Products: This domain introduces investment products beyond traditional mutual funds, including ETFs, segregated funds, and hedge funds, examining their features, structures, benefits, risks, and regulatory treatment.
Topic 3
  • Analysis of Mutual Funds: This domain addresses evaluation tools and techniques for mutual fund performance, including quantitative measures like returns and risk metrics, and qualitative factors like manager experience and investment style.
Topic 4
  • The Know Your Client Communication Process: This domain focuses on gathering and documenting client information to ensure suitable recommendations, including understanding financial situations, investment objectives, risk tolerance, and maintaining ongoing communication with clients.
Topic 5
  • Introduction to the Mutual Funds Marketplace: This domain covers the structure of Canada's mutual fund industry, including key participants like manufacturers, distributors, and regulators, along with distribution channels and the regulatory framework governing the industry.

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CISI Investment Funds in Canada (IFC) Exam Sample Questions (Q360-Q365):NEW QUESTION # 360
Fund A has a 5-year average return of 10% and a standard deviation of 5%. Fund B has a 5-year average return of 8% and a standard deviation of 2%. Select the most accurate statement about Funds A and B.
  • A. Fund A's returns have ranged from 5% to 10%
  • B. Fund B's lowest return is lower than Fund A's lowest return
  • C. Fund B is less risky than Fund A
  • D. Fund A will always provide a higher return than Fund B
Answer: C
Explanation:
A lower standard deviation indicates lower volatility and thus lower risk. Fund B, with a standard deviation of
2%, is less risky than Fund A, with a standard deviation of 5%. The feedback from the document states:
"We can find the probable range of returns as follows: Average Return + Standard deviation = Positive outcome. Average Return - Standard deviation = Negative outcome. In any given year Fund A, which has the higher standard deviation, could fluctuate much more widely, making it less attractive as an investment, even over the long-term. Volatility is the most common measure of risk." Reference: Chapter 8 - Constructing Investment PortfoliosLearning Domain: Understanding Investment Products and Portfolios

NEW QUESTION # 361
What party is responsible for ensuring that a public corporation's total number of outstanding common shares does not exceed its total number of authorized shares?
  • A. Distributor
  • B. Trustee
  • C. Portfolio manager
  • D. Registrar
Answer: D
Explanation:
A corporation's charter specifies the maximum number of authorized shares it may issue. The Registrar (provincial securities administrator) ensures compliance so that a public corporation does not issue more shares than authorized.
Trustees oversee debt obligations.
Portfolio managers manage investments.
Distributors sell securities but do not regulate share issuance.
Thus, the responsible party is the Registrar.

NEW QUESTION # 362
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. The Canadian Securities Administrators have instituted national instruments regarding Mariana's right to cancel her order.
  • C. The right of withdrawal is based on the securities act legislation within the jurisdiction the purchase occurred.
  • D. Before Mariana can cancel her order, she must wait two business days to pass before she can cancel her order.
Answer: C
Explanation:
The right of withdrawal is a statutory right that allows investors to cancel their mutual fund purchase within two business days of receiving the Fund Facts document or confirmation of purchase, whichever is later. The right of withdrawal is based on the securities act legislation within the jurisdiction where the purchase occurred, which may vary slightly across provinces and territories.

NEW QUESTION # 363
What is the likely economic impact of a rise in nominal and real GDP, mainly due to higher prices?
  • A. Business activity increase
  • B. Living standard increase
  • C. Interest rate decrease
  • D. Inflationary rate decrease
Answer: A
Explanation:
A rise in both nominal and real GDP, even when driven mainly by higher prices, generally indicates an increase in overall business activity, making Option C the correct answer. The Investment Funds in Canada course explains that nominal GDP measures output using current prices, while real GDP adjusts for inflation to reflect actual growth in economic output.
If both nominal and real GDP rise, this suggests that the economy is producing more goods and services, not merely experiencing price increases. Increased production typically results in higher employment, greater corporate revenues, and expanded economic activity.
Option A is incorrect because rising GDP-especially when price pressures exist-often leads to higher, not lower, interest rates as central banks attempt to control inflation. Option B is incorrect because living standards improve primarily when real GDP growth exceeds inflation, not when growth is mainly price- driven. Option D is incorrect because higher prices indicate inflationary pressures, not a decrease.
The CIFC curriculum emphasizes that GDP growth is a primary indicator of economic expansion and business activity. Therefore, Option C is the correct and fully CIFC-aligned answer.

NEW QUESTION # 364
Thomas, a resident of Ontario, is a full-time university student. He does food delivery to supplement his income. During the school year, he works on weekends and works full-time during his summer break.
Thomas' pensionable earnings were $16,000 for the year. How much must Thomas contribute to CPP when CPP contribution rate is 5.95%?
  • A. $0
  • B. $743.75
  • C. $1,425.00
  • D. $912.00
Answer: B
Explanation:
Thomas must contribute to CPP based on his pensionable earnings, which are his income from employment or self-employment that are subject to CPP. However, he can deduct a basic exemption amount from his pensionable earnings, which is $3,500 for the year. Therefore, his contributory earnings are:
16,000#3,500=12,500
The CPP contribution rate is 5.95% for employees and self-employed workers. Therefore, Thomas must contribute:
12,500×5.95%=743.75
:
Canadian Investment Funds Course (CIFC) Study Guide, Chapter 6: Registered Plans, Section 6.3: Canada Pension Plan (CPP), page 6-101 Canada Pension Plan - How much could you receive - Canada.ca2

NEW QUESTION # 365
......
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