Which of the following statements about total return for money market funds is TRUE?

• A.Performance is displayed with both current yield and effective yield.
• B.Effective yield will always be lower than current yield.
• C.Current yield incorporates the compounding effect.
• D.Current yield reflects the income earned on a money market fund for the most recent 14 day period.

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You have been researching Canadian equity mutual funds for a new client. You come across the following information.

What can you conclude from this information?

• A.Chamberlain Equity Fund has lower volatility since its 5-year annualized return is higher.
• B.Fontaine Equity Fund is a better fund because it has a higher quartile ranking.
• C.Fontaine Equity Fund has a lower risk level since its Sharpe Ratio is lower.
• D.Fontaine Equity Fund's higher MER contributes to its lower 5-year annualized return.

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Which of the following statements about capital gains distributions from mutual fund trusts is correct?

• A.Capital gains distributions from a mutual fund trust are reported annually on a T3.
• B.Capital gains from mutual fund distributions are 100% taxable.
• C.Capital gains distributions are not a disposition and are therefore not taxable.
• D.Capital gains from mutual fund trusts are deferred until the investor exits the mutual fund.

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Janine will celebrate her 71st birthday this year. She currently has a lot of money in a personal registered retirement savings plan (RRSP) and knows there are rules about what she can do with those funds. Which of the following is TRUE?

• A.She can convert her RRSP to a locked-in retirement income fund (LRIF).
• B.She can convert her RRSP to a registered retirement income fund (RRIF) this year or by December 31st of next year.
• C.She can take the entire amount in cash, with no tax consequences because her RRSP funds were tax-sheltered.
• D.She can purchase a registered term or life annuity.

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Yesterday, Mariana purchased mutual funds for the first time from Diablo, who is a Dealing Representative for Horizon Financial. When Mariana mentions to her friend Marcus that she just started to invest, Marcus confides that he experienced losses from mutual fund investing. Her initial feelings of excitement have now changed to worry and regret. She wished she had talked to her friend before investing and wonders if she can change her mind.
Which statement regarding the right of withdrawal applies?

• A.How the right of withdrawal can be applied is determined by the Mutual Fund Dealers Association of Canada's conduct rules.
• B.The right of withdrawal is based on the securities act legislation within the jurisdiction the purchase occurred.
• C.The Canadian Securities Administrators have instituted national instruments regarding Mariana's right to cancel her order.
• D.Before Mariana can cancel her order, she must wait two business days to pass before she can cancel her order.

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