Free IFSE Institute CIFC Exam Dumps Questions & Answers

Which of the following statements is true when comparing fund of funds to traditional mutual funds?

• A.Fund of funds have more asset class options available and lower fees than traditional mutual funds.
• B.Fund of funds have higher fees than traditional mutual funds since there are two sets of management fees.
• C.Since fund of funds invest primarily outside Canada, they will have higher fees than traditional mutual funds.
• D.Fund of funds have more fee structure options available and lower fees than traditional mutual funds.

Raybert has a very short-term investment objective and has decided to purchase money market instruments.
There are plenty of 90-day money market securities available for him to choose from. Although Raybert is aware that all the respective issuers have a similar need for his capital, no matter what he decides, he can only afford to purchase one.
In terms of financial markets and their relationship to the principles of supply and demand, which characteristic of investment capital are the issuers being exposed to?

• A.Scarcity
• B.Mobility
• C.Sensitivity
• D.Risk

Which of the following statements regarding mutual fund fees is correct?

• A.Trailer fees are only paid to mutual fund dealers when a purchase is made.
• B.Trading commissions are paid from the management fee.
• C.Redemptions are made from units held by investors to pay trailer fees.
• D.The mutual fund dealer receives trailer fees based on the value of assets under management.

Daisy is a Dealing Representative registered in the province of Saskatchewan only. Daisy's client, Orville, a resident of Lloydminster, Saskatchewan is a retiree who presently has a $1,000,000 with her dealer, Easy Ride Financial. Orville is now planning to move to Vegreville, Alberta next month. Easy Ride Financial is registered in Alberta and Saskatchewan. Neither Easy Ride Financial nor Daisy have any clients who are resident in Alberta.
Which of the following should Daisy do if she wants to continue to service Orville's account?

• A.Daisy could seek permission from her dealer to request a client mobility exemption with the Alberta Securities Commission.
• B.Daisy will need to forfeit her registration in Saskatchewan if she wants to be registered in Alberta to keep Orville as a client.
• C.Register with a different mutual fund dealer that is registered in Alberta so she can keep Orville as a client.
• D.Request approval from the Mutual Fund Dealers Association of Canada to be eligible to be a registered Dealing Representative in Alberta

Lior is considering an investment that gains exposure to companies that trade on the Toronto Stock Exchange (TSX). He is not sure what the differences are between a Canadian equity fund and a Canadian dividend fund.
What would you tell him?

• A.Dividend funds tend to be less volatile and lower risk than equity funds.
• B.Equity funds hold common shares while dividend funds hold only preferred shares.
• C.Dividend funds generate tax-preferred income while income from equity funds is fully taxable.
• D.Equity funds are more appropriate than dividend funds if Lior requires a steady flow of income.