Free CISI IFC Exam Dumps Questions & Answers

Your client, a high-income earner in a high marginal tax bracket, is seeking to minimize the amount of tax he pays on investment income while continuing to invest in mutual funds. Which mutual fund would best meet his investment objective?

• A.Fixed-income fund
• B.Money market fund
• C.Canadian equity fund
• D.Foreign equity fund

Bernadette has a high-paying job and is in the top tax bracket. She recently received a payment of $5 million upon the settlement of her uncle ' s estate. Bernadette would like to invest her inheritance in financial products that would not only grow her money but is also income tax friendly.
Which of the following would provide the most favourable tax treatment?

• A.Dividends from a large public Canadian corporation.
• B.Dividends received from a large foreign corporation.
• C.Coupon payments from Government of Canada bonds.
• D.Capital gains from stock investments.

Which behavioural bias causes a person to rely on a "best-fit" process to form the basis for understanding a new circumstance?

• A.Representativeness
• B.Hindsight predisposition
• C.Availability
• D.Status quo

A client who is comfortable with risk has moved from stage two to stage three of the investor life cycle. What asset category should the client increase in her portfolio?

• A.Money market.
• B.Equity.
• C.Bonds.
• D.Fixed-income.

Which of the following statements about your mutual fund registration is CORRECT?

• A.You must renew your registration through the online NRD system every two years.
• B.You can sell mutual funds anywhere in Canada as long as you are registered with one of the provincial or territorial securities commissions.
• C.You must inform the regulatory authorities of any material or significant changes to your personal circumstances.
• D.Your online application must be reviewed and approved by your mutual fund dealer before you can begin to sell mutual funds.