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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When purchasing a mutual fund, what is the correct way to determine the number of units purchased if the order was entered today at 2:30 p.m. ET?

• A.Use today's NAV
• B.Use the 2:30 p.m. ET NAV
• C.Use the average of today's and yesterday's NAV
• D.Use yesterday's NAV

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What type of fee does a mutual fund sponsor often reduce the longer an investor holds a back-end load fund?

• A.Sales fee
• B.Acquisition fee
• C.Redemption fee
• D.Trailer fee

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Sven owns preferred shares that give him the option to sell his holdings back to the issuing company at a predetermined price and within a specified time. What type of preferred shares does Sven own?

• A.retractable
• B.participating
• C.convertible
• D.redeemable

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Which of the following Dealing Representatives has CORRECTLY fulfilled their suitability obligation?

• A.Clarence determines that the Absolute Alternative Fund is suitable for all of his clients. Clarence believes that all investors need alternative funds in order to be properly diversified.
• B.Kiri recommends the Conservative Bond Fund to his client, Myrtle. The fund generates income and Myrtle's investment objective is "income" on her Know Your Client (KYC) form.
• C.Li Ming recommends the Venturex Labour-Sponsored Fund to her client, Park. While Park has low tolerance and capacity for risk, Li Ming provides detailed disclosure which explains the fund's risks.
• D.Roderik determines that the model portfolio he has developed will be suitable for all of his clients.Roderik has included investments with both income and growth to appeal to all investors.

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