An increase in which factor may cause interest rates to decrease?

• A.Default risk
• B.Business activity
• C.Capital supply
• D.Inflation rate

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Sofie is a busy mutual fund sales representative. She would like to move clients that are invested in low- yielding cash accounts to her firm's higher-yielding proprietary money market mutual fund. She confirms the orders with the clients, then instructs her new sales assistant, who will write the IFC exam next week, to enter orders to buy units in this fund. How has Sofie violated the standards of conduct?

• A.She allowed an unregistered individual to process the order to buy units
• B.She failed to establish a scheduled review for her clients' accounts
• C.She has done insufficient research and violated her due diligence requirement
• D.She violated no standards of conduct

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Which financial instruments trade primarily in an auction market?

• A.Equity initial public offerings
• B.Mutual funds
• C.ETFs
• D.Bonds

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A fund manager has diversified the equity portfolio he manages in order to reduce the potential negative impact of unfavorable information relating to any one stock. What type of risk has he reduced?

• A.Default risk
• B.Interest rate risk
• C.Market risk
• D.Unique risk

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Armand, a financial advisor, recently met with Austin, a potential client. Austin is interested in a conservative portfolio that focuses on mature companies that are out of favour with a low turnover. What is the best investment philosophy for Austin?

• A.Momentum strategy
• B.Growth at a reasonable price
• C.Value style
• D.Growth investing

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