IFSE EXAM 21

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School

George Brown College Canada *

*We aren’t endorsed by this school

Course

4502

Subject

Finance

Date

Apr 26, 2024

Type

pdf

Pages

5

Uploaded by KidRiverApe4 on coursehero.com

4/22/24, 4:01 AM IFSE Institute Canadian Investment Funds Course - CIFC Exam Questions [2024] https://www.pass4test.com/CIFC-exam-questions.html 1/5 (/) (https://mylivechat.com/chatnoscript.aspx?HCCID=66608068) Cart (/cart.php) My Orders (/member.php?ac=myorder) Limited Time Discount Offer! 15% Off - Ends in 02:04:13 - Use Discount Coupon Code P4TCOM2024 IFSE Institute Canadian Investment Funds Course - CIFC Exam Questions QUESTION NO: 121 Which of the following is a characteristic of a bond fund? Hide answers/explanation Home (/) Products (/allproducts.php) Certifications (/certifications.php) Free Demo (/samples.php) Guarantee (/page_guarantee.html) How to pay? (/page_howtopay.html) F.A.Q (/page_faqs.html) A. Income from a bond fund will primarily be interest but may also be capital gains B. Bond funds are very low risk because they never go down in value. C. If interest rates rise the value of a bond fund will also tend to rise. D. Securities regulation specifies that bond funds must invest in investment grade bonds. Chat now
4/22/24, 4:01 AM IFSE Institute Canadian Investment Funds Course - CIFC Exam Questions [2024] https://www.pass4test.com/CIFC-exam-questions.html 2/5 Correct Answer: A Explanation A bond fund is a mutual fund that invests primarily in bonds and other debt securities. Income from a bond fund will primarily be interest but may also be capital gains if the fund sells bonds that have appreciated in value. Bond funds are not very low risk because they can fluctuate in value depending on interest rate changes and credit risk. If interest rates rise, the value of a bond fund will tend to fall because existing bonds will become less attractive than new bonds with higher rates. Securities regulation does not specify that bond funds must invest in investment grade bonds, although some funds may have this as an investment objective or policy. References: What Is a Bond Fund? QUESTION NO: 122 Grant is a Dealing Representative with WealthPlus Securities Inc. Grant becomes a volunteer member of his local arena's Hockey Association and is appointed as the Association's new Treasurer. Which of the following statements about Grant's appointment as Treasurer is CORRECT? Hide answers/explanation Correct Answer: B Explanation Grant's appointment as Treasurer is considered an outside activity, regardless of whether he is compensated or not. According to the CIFC, Dealing Representatives must obtain their firm's written approval before engaging in any outside activity that could interfere with their ability to perform their duties or create a conflict of interest with their clients or employer. Grant must disclose the nature and extent of his involvement with the Hockey Association and how it may affect his availability, reputation, or potential for conflicts of interest. The firm may approve, reject, or impose conditions on Grant's outside activity. References: Canadian Investment Funds Course, Chapter 8: Suitability and Know Your Client1 A. If Grant is not compensated for the Treasurer position, his firm's approval is not required. B. Grant must obtain the firm's approval before he starts the Treasurer position. C. Since Grant holds the Treasurer position on a voluntary basis, it is not an outside activity. D. Grant must disclose the Treasurer position to his firm once he has accepted the position. Chat now
4/22/24, 4:01 AM IFSE Institute Canadian Investment Funds Course - CIFC Exam Questions [2024] https://www.pass4test.com/CIFC-exam-questions.html 3/5 QUESTION NO: 123 Which of the following are obligations on mutual fund dealing representatives imposed by The Proceeds of Crime (Money Laundering) and Terrorist Financing Act? Hide answers/explanation Correct Answer: A QUESTION NO: 124 Which of the following statements about capital gains distributions from mutual fund trusts is correct? Hide answers/explanation Correct Answer: D Explanation According to the Canadian Investment Funds Course, capital gains distributions are the portion of the mutual fund trust's net realized capital gains that are paid out to the unitholders. Capital gains distributions are not the same as capital gains from selling or redeeming units of the mutual fund trust, which are reported on a T5008 slip. Capital gains distributions are taxable in the year they are received, even if they are reinvested in additional units of the fund. The A. record-keeping of large transactions, account-related information, and other relevant records B. confirming client identity each time before concluding any transaction C. reporting all financial transactions to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) D. enhancing public awareness of matters related to money laundering and terrorist financing A. Capital gains from mutual fund distributions are 100% taxable. B. Capital gains distributions are not a disposition and are therefore not taxable. C. Capital gains from mutual fund trusts are deferred until the investor exits the mutual fund. D. Capital gains distributions from a mutual fund trust are reported annually on a T3. Chat now
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