Which of the following statements best describes dollar-cost averaging?

• A.It is a type of systematic withdrawal program.
• B.It is the strategy of purchasing a set number of units of a mutual fund on a regular basis.
• C.It is buying a set dollar amount of a mutual fund on a regular basis
• D.It is making lump-sum purchases when the market price for a mutual fund is low.

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Which of the following is a rationale for a portfolio manager to use a passive portfolio management strategy?

• A.The manager wishes to create capital gains in the mutual fund by frequently buying and selling stocks
• B.The manager does not believe in using benchmarks.
• C.The manager believes that as the markets are fairly priced, it would be futile to look for mis-priced securities.
• D.The manager believes he or she can outperform the market with his or her stock picking skills.

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Xian-Li believes she is a sophisticated investor. She has constructed her own portfolio and has had some success. She does not believe in studying a company's details such as earnings, expenses, or assets. She is more concerned with patterns in a company's stock price over time. She believes patterns form and can be used to predict future movements in the market.
How does Xian-Li evaluate the companies in her portfolio?

• A.fundamental analysis
• B.value analysis
• C.flowchart analysis
• D.technical analysis

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The owners of Underground Airways Ltd. want to take their privately owned corporation public through an initial public offering (IPO). They are speaking to a specialist from an investment dealer to determinewhether it would be advisable to become listed on a stock exchange or the over-the-counter (OTC) market.
In comparing the two options, which of the following considerations is TRUE?

• A.A stock exchange listing would provide Underground with greater market exposure and public confidence than listing on the OTC market.
• B.Underground would be subject to less stringent listing requirements if they chose the stock exchange as compared to the OTC market.
• C.Underground would still be directly involved in the trading of their shares on either market.
• D.If Underground chose to list on the OTC market, there would be no secondary market available for investors.

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Maalik opens an account for a new client, John. During the new account process, Maalik determines that he will need to confirm John's identity. Which of the following statements about Maalik's identification requirements is CORRECT?

• A.If Maalik determines that there is anything suspicious about John's transaction, he is required to report the matter to his dealer. The dealer must report the matter to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).
• B.If John attempts to make a suspicious deposit, Maalik is required to report the attempt to his dealer. The dealer must keep records of attempted suspicious transactions that are not reported to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).
• C.If John wants to make a large cash deposit of $10,000 or more, Maalik is required to collect personal information about John and report it to his dealer. The dealer must report the information to the Canada Revenue Agency (CRA).
• D.If Maalik learns that John is the president of a state-owned company, Maalik is required to report John as a Politically Exposed Foreign Person (PEFP) to his dealer. If John is not a US person, the dealer must report the account to the Internal Revenue Service (IRS).

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