Marc asks his new client for copies of his mortgage documents. Which Know Your Client component is Marc researching?

• A.Investment knowledge
• B.Personal circumstances
• C.Financial circumstances
• D.Financial goals and objectives

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If the Consumer Price Index (CPI) was 140.6 last year and 146.9 this year, what was the inflation rate over the year?

• A.4.12%
• B.5.20%
• C.4.48%
• D.6.04%

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Apex Mutual Fund has been structured to avoid taxation by distributing any net interest, dividends, and capital gains to unitholders each calendar year. This is an example of what type of mutual fund structure?

• A.Closed-end mutual fund
• B.Mutual fund trust
• C.Open-ended mutual fund
• D.Mutual fund corporation

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Francis wants to redeem his US Asset Allocation Fund as he needs the money for a down payment for a home purchase. The current proceeds from the redemption are USD $27,859, and the current CAD/USD exchange rate is 0.7353.
How much will Francis receive in Canadian dollars when he redeems the Funds? Please round your answer to the nearest dollar.

• A.$37,888
• B.$36,698
• C.$42,861
• D.$35,859

Correct Answer: A

A is correct because Francis will receive $37,888 in Canadian dollars when he redeems the Funds. This is calculated by dividing the current proceeds from the redemption in US dollars by the current CAD/USD exchange rate and rounding to the nearest dollar. That is,

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Nelson is a Dealing Representative with True Wealth Advisors Inc., a mutual fund dealer. Nelson follows proper procedures related to his firm's Relationship Disclosure Information (RDI). Which of the following CORRECTLY describes how Nelson is permitted to evidence that he satisfied his RDI obligation?

• A.Nelson may retain a copy of the RDI in the client file with detailed notes to confirm that he provided and explained the RDI to the client.
• B.Nelson may deliver the RDI to clients who request it and keep detailed notes of the clients who were provided with the RDI.
• C.Nelson can formalize his relationship under the RDI using a Letter of Engagement that specifies duties, responsibilities, and level of service.
• D.Nelson can record detailed notes which confirm that he provided and explained the Fund Facts to the client within 2 days of the RDI.

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