Free CISI IFC Exam Dumps Questions & Answers

Which financial instrument gives its purchaser the right to vote at the issuing company's annual meeting?

• A.  Common shares
• B.  Options
• C.  Corporate bonds
• D.  Preferred shares

Danica is looking for a mutual fund to hold in her non-registered account that provides a regular stream of income with potential for capital growth. She is having difficulty distinguishing between bond funds and dividend funds. Which of the following statements is TRUE?

• A.  Bond fund distributions receive more favorable tax treatment than that of dividend funds.
• B.  The return of dividend funds relies only on interest rates; whereas with bond funds, the return also depends on the general direction of stock markets.
• C.  When interest rates rise, the net asset value per unit (NAVPU) of bond funds decreases; whereas with dividend funds it rises.
• D.  Bond funds receive fixed interest payments from most of their investments.

What amount of Canadian taxes would an investor with a 33% marginal tax rate pay on a $5,000 dividend payment from a foreign corporation?

• A.  $0
• B.  $825
• C.  $1,241
• D.  $1,650

What type of asset allocation strategy rebalances asset classes to pre-defined corridors?

• A.  Model
• B.  Strategic
• C.  Tactical
• D.  Expected

Fernanda, an advisor, is setting up her process for completing client suitability assessments. What must Fernanda do with respect to investment suitability?a

• A.  Review the Know Your Client information with clients at least annually.
• B.  Assess suitability on solicited orders only.
• C.  Reassess suitability as market conditions change.
• D.  Recommend the lowest cost products.