What entity receives all fund money obtained from investors buying units/shares?

• A.Registrar
• B.Fund manager
• C.Custodian
• D.Dealer

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Yesterday, Mariana who is new to investing and purchased mutual funds for the very first time. She shared her excitement with her good friend, Julius. However, after Julius learned about her investment, he admits that he had a bad experience with mutual fund investing and that he lost money. Mariana regrets not talking to Julius prior to making her decision. Her feelings of enthusiasm have changed to fear. She is wondering if it is too late to change her mind and cancel her purchase order.
Which statement regarding the right of withdrawal is CORRECT?

• A.The right of withdrawal for investors can be different depending on which province (or territory) the fund was purchased within.
• B.The Canadian Securities Administrators (CSA) created legislation that addresses the right of withdrawal for investors.
• C.The Mutual Fund Dealers Association of Canada (MFDA) have written conduct rules regarding the right of withdrawal.
• D.Mariana has to wait two business after her purchase order has been settled to exercise the right of withdrawal.

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What does suitability mean?

• A.Recommendations are appropriate for the client's unique situation and investment objectives
• B.The investor's major concerns are addressed
• C.Understanding the personal and financial knowledge of the client
• D.Recommendations are not based on the personal and financial knowledge of the client

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Megan purchases a treasury bill for $98,200. When it matures for $100,000, how does Megan treat the $1,800 difference?

• A.as interest income
• B.as a capital gain
• C.as a dividend
• D.as return of capital

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An investor, whose marginal tax rate is 29%, owns non-registered units of a fund that have a beginning and ending NAVPS of $21.50 and $25.50, respectively. The inflation rate is 2%. Assuming dividends are reinvested and ignoring additions or withdrawals, what is the before-tax, one-year rate of return?

• A.16.60%
• B.18.60%
• C.15.69%
• D.13.21%

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