Canadian Investment Funds Course | CIFC | 400 Questions

MY ULTIMATE GOAL:  Make you fully prepared for your CIFC (offered by IFSE) exam!

This course:

• For those who are intended to take the Canadian Investment Funds Course (CIFC) offered by IFSE.

• For those who want to enter into the banking industry in Canada.

• Covers all pages/points of the Canadian Investment Funds Course (CIFC) textbook offered by IFSE book.

• Includes 4 mock exams, each consisting of 100 questions (Total of 400 questions (No repetitive question)).

• The closest pack of questions to the real CIFC exam.

• The timing (3 hours), format (multiple-choice), level of difficulty, and passing score (60%) have been set just like your real exam.

• Detailed explanations for each question are provided (for both correct and incorrect options).

• You’ll be able to see how many questions you got right from which chapters and more importantly,

• All 4 mock exams are based on the same weighting of the real exam and include:

  • Unit 1 | Regulatory environment: 4%

  • Unit 2 | Registrant Responsibilities: 12%

  • Unit 3 | Know Your Client, Know Your Product, and Suitability: 16%

  • Unit 4 | Economic factors and financial markets: 3%

  • Unit 5 | Types of investments: 8%

  • Unit 6 | Types of Investment funds:14%

  • Unit 7 | Portfolio management: 6%

  • Unit 8 | Mutual funds administration: 12%

  • Unit 9 | Retirement: 12%

  • Unit 10 | Taxation: 6%

  • Unit 11 | Making recommendations: 7%

Our four series of mock exams meticulously replicate the format, difficulty level, and content weighting of the Canadian Investment Funds Course (CIFC) offered by IFSE exam. Through comprehensive practice, you will gain confidence, hone your skills, and become fully prepared to excel in your certification journey.

All questions are high quality, original and have been written from scratch!

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Quality speaks for itself:

SAMPLE QUESTION #1 (Conceptual-based):

Jane wants to invest in bonds with lower price volatility. Which bond characteristic should she consider?

A. Shorter maturity and higher coupon.

B. Longer maturity and higher coupon.

C. Shorter maturity and lower coupon.

D. Longer maturity and lower coupon.

What’s your guess? Scroll below for the answer!

ANSWER:

Correct Option: A.

Extracted from Unit 5 | Types of investments:

Correct option: “Shorter maturity and higher coupon.”

• Shorter maturity and higher coupon bonds are less sensitive to changes in interest rates, leading to lower price volatility. This is because:

  • Shorter maturity: Bonds with shorter maturities have less exposure to changes in interest rates, as they are repaid sooner. Thus, their prices are less affected by interest rate fluctuations.

  • Higher coupon: Bonds with higher coupon rates return more cash to investors through periodic payments, reducing the bond’s duration (a measure of interest rate sensitivity) and making the bond price more stable.

Why other options are incorrect:

Longer maturity and higher coupon:

• Although a higher coupon reduces interest rate sensitivity, the longer maturity increases price volatility, as the bondholder is exposed to interest rate changes over a longer period.

Shorter maturity and lower coupon:

• While shorter maturity reduces interest rate sensitivity, the lower coupon means fewer periodic payments, increasing the bond’s duration and making it more sensitive to price volatility compared to bonds with higher coupons.

Longer maturity and lower coupon:

• This combination leads to the highest price volatility, as longer maturity amplifies exposure to interest rate changes, and lower coupon payments mean less cash flow to offset changes in bond prices.

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SAMPLE QUESTION #1 (Scenario-based):

Sarah, an investor,  submits a purchase request for a mutual fund at 6 p.m. EST on May 10. what are the valuation and settlement dates for her purchase, respectively?

A. May 10, May 11.

B. May 11, May 11.

C. May 11, May 12.

D. May 11, May 10.

What’s your guess? Scroll below for the answer!

ANSWER:

Correct Option: C.

Extracted from Unit 8 | Mutual funds administration:

Correct option: May 11, May 12.

• To determine the valuation date and settlement date for Sarah’s mutual fund purchase, we need to consider the following:

  1. Order Submission Timing:
     Mutual fund orders are typically processed at the next available Net Asset Value (NAV), which is calculated after the market closes at 4:00 p.m. EST on business days.

     • Since Sarah submitted her purchase request at 6:00 p.m. EST on May 10, her order missed the cutoff time for same-day processing.

     • Therefore, her order will be processed based on the NAV calculated at the close of the next business day (May 11).

  2. Valuation Date:
     The valuation date is the date on which the NAV used to process the order is calculated.

     • For Sarah, this will be May 11, the next business day after her order submission.

  3. Settlement Date:
     Mutual fund purchases typically follow a T+1 settlement rule (one business day after the trade date).

     • For an order processed on May 11, the settlement date will be May 12, assuming no holidays or weekends interfere.

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SAMPLE QUESTION #2 (Calculation-based):

Emily, a financial analyst, is examining XYZ Corporation’s financial statements. She observes that the company’s retained earnings at the beginning of the year were $175,000. After earning a profit of $55,000 during the year and paying $30,000 in dividends on common shares, what is the company’s retained earnings at the end of the year?

A. $100,000.

B. $175,000.

C. $200,000.

D. $225,000.

What’s your guess? Scroll below for the answer!

ANSWER:

Correct Option: C.

Detailed Explanation:

• Retained earnings at the end of the year can be calculated by adding the profit earned during the year to the retained earnings at the beginning of the year, and then subtracting any dividends paid out.

  In this case, the calculation would be as follows:

  Retained Earnings at End of Year = Retained Earnings at Beginning of Year + Profit − Dividends

  Substituting the given values into the formula, we get:

  Retained Earnings at End of Year= $175,000 + $55,000 − $30,000 = $200,000.

Welcome to the best practice exams to help you prepare for your Canadian  Investment Funds Course (CIFC) exam.

• You can retake the exams as many times as you want

• This is a huge original question bank

• You get support from instructors if you have questions

• Each question has a detailed explanation for both correct and incorrect options.

Disclaimer:

The trade-marks AFP, AIS, BCO, CIM, CSI, CSC, CPH, DFOL, FP1, FP2, FPIC, FPSU, IDSC, IFC, CIFC, NEC, OLC, PFP, PFSA, PMT, WME, Wealth Management Essentials, Branch Compliance Officer, Canadian Securities Course, Conduct and Practices Handbook Course, Investment Funds in Canada, New Entrants Course, Wealth Management Essentials, Personal Financial Services Advice Reading, Financial Planning 1, Financial Planning 2, Financial Planning Supplement, Applied Financial Planning, and Personal Financial Planner are owned by the Canadian Securities Institute (CSI®). HTB Intelligence Inc. is not sponsored, licensed, or endorsed by the Canadian Securities Institute (CSI®) and the IFSE. Our notes and study materials and mock exams are independently produced to assist students in preparing for their exams. These materials are not officially sponsored by any other organization in the financial services industry.

We hope that by now you’re convinced!

Happy learning and Best of luck on your CIFC journey!