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CISI Investment Funds in Canada (IFC) Sample Questions:
1. What information does Fund Facts provide to potential investors?
A) How to calculate the taxes owed from investment income.
B) What the mutual fund is currently investing in.
C) The portfolio management strategy that is used.
D) The remuneration paid to the Independent Review Committee.
2. A self-directed investor bases stock purchase decisions on internet recommendations and stock tips, believing this provides the most accurate information. What is the investor's behavioural bias?
A) Endowment
B) Availability
C) Overconfidence
D) Representativeness
3. Which statement regarding the Fund Facts document is CORRECT?
A) For leveraged accounts, the Fund Facts document is not required if the client has been provided with the Leverage Risk Disclosure document.
B) Before accepting an order from a client, a Dealing Representative is expected to provide and explain the Fund Facts document.
C) The Fund Facts document must be delivered to the client, electronically or in writing, within 5 days of the transaction date.
D) The Fund Facts document must not contain performance data.
4. Beatrice is looking for comprehensive information regarding the analysis of financial statements and fund management expenses as it relates to her current mutual fund investment.
Which document would provide the information she is looking for?
A) Simplified Prospectus
B) Fund Facts
C) Management Reports of Fund Performance
D) Annual Information Form
5. Evan owns retractable preferred shares of Ingram Corp. Which statement CORRECTLY describes a key feature of Evan's shares?
A) Offers Evan the opportunity to receive additional dividends if Ingram Corp's profit exceeds a stated level.
B) Entitles Evan to sell the shares back to Ingram Corp at a pre-determined price and time in the future.
C) Allows Ingram Corp to buy back the preferred shares at a pre-determined price within a defined period.
D) Gives Evan the option to convert the Ingram Corp preferred shares into a fixed number of common shares at a predetermined price within a specified period.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: B | Question # 3 Answer: B | Question # 4 Answer: C | Question # 5 Answer: C |
By Luther
