CIFC IFSE Institute Practice Questions

Question #6 (Topic: Demo Questions)

Iliana owns 1,000 participating preferred shares in the First Canadian Bank. Which of the following
features are characteristic of her investment?

A.

Iliana has the right to purchase more preferred shares in the company
before common shareholders.

B.

Iliana is able to vote at the annual general meeting and elect members of the board of directors.

C.

Iliana can convert her preferred shares to common shares at a fixed price and within a specified time period

D.

Iliana has a right to share in the bank's net profits over and above the specified dividend rate

Correct Answer: D

Explanation not available for this question.

Question #7 (Topic: Demo Questions)

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.

The right of withdrawal is based on the securities act legislation within the jurisdiction the purchase occurred.

B.

Before Mariana can cancel her order, she must wait two business days to pass before she can cancel her order

C.

How the right of withdrawal can be applied is determined by the Mutual Fund Dealers Association of Canada's conduct rules.

D.

The Canadian Securities Administrators have instituted national instruments regarding Mariana's right to cancel her order.

Correct Answer: A

Explanation not available for this question.

Question #8 (Topic: Demo Questions)

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.

flowchart analysis

C.

technical analysis

D.

value analysis

Correct Answer: C

Explanation not available for this question.

IFSE Institute CIFC - Canadian Investment Funds Course Exam Certification Exam

Iliana owns 1,000 participating preferred shares in the First Canadian Bank. Which of the followingfeatures are characteristic of her investment?

Iliana has the right to purchase more preferred shares in the company before common shareholders.

Iliana is able to vote at the annual general meeting and elect members of the board of directors.

Iliana can convert her preferred shares to common shares at a fixed price and within a specified time period

Correct Answer: D

The right of withdrawal is based on the securities act legislation within the jurisdiction the purchase occurred.

Before Mariana can cancel her order, she must wait two business days to pass before she can cancel her order

How the right of withdrawal can be applied is determined by the Mutual Fund Dealers Association of Canada's conduct rules.

The Canadian Securities Administrators have instituted national instruments regarding Mariana's right to cancel her order.

Correct Answer: A

Xian-Li believes she is a sophisticated investor. She has constructed her own portfolio and has had

fundamental analysis

flowchart analysis

technical analysis

value analysis

Correct Answer: C

Iliana owns 1,000 participating preferred shares in the First Canadian Bank. Which of the following
features are characteristic of her investment?

Iliana has the right to purchase more preferred shares in the company
before common shareholders.