The Mutual Fund Dealers Association of Canada (MFDA) has strict rules concerning conflicts of interest.
Which of the following is TRUE?

• A.Only actual conflicts must be reported to your employer. Potential conflicts need not be reported because they have not happened yet.
• B.Activities that do not relate specifically to your employer need not be reported.
• C.Borrowing money from a client will always be acceptable provided there is a written contract detailing the nature of the agreement.
• D.Gifts and benefits may be provided to a client if your employer is aware of the benefits and has given approval.

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Robin is preparing for a client meeting. She is gathering information about a mutual fund that she would like to recommend to her client. Which of the following documents would be considered sales communication?

• A.the prospectus
• B.fund facts
• C.marketing brochure
• D.annual information form

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The following table shows Sabrina's earned income for the past few years:

Sabrina has always maximized her RRSP contributions, so she has no carry-forward room available. If the maximum contribution limit for Year 3 is $24,270, what is her RRSP contribution room for Year 3?

• A.$22,500
• B.$24,270
• C.$25,200
• D.$26,100

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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

Explanation
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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Your client Gerard is 30 years old and plans to retire at age 65. He has a mutual fund portfolio of $40,000 in which he invests $1,500 monthly. Gerard's objective is to use these funds to meet the 20% down payment requirement to buy a house for $650,000.
What is Gerard's investment time horizon not considering market fluctuations?

• A.5 years
• B.15 years
• C.25 years
• D.35 years

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