CIFC VALID EXAM SAMPLE | CIFC NEW BRAINDUMPS FREE

CIFC Valid Exam Sample | CIFC New Braindumps Free

CIFC Valid Exam Sample | CIFC New Braindumps Free

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Tags: CIFC Valid Exam Sample, CIFC New Braindumps Free, Valid CIFC Real Test, CIFC Free Updates, Exam CIFC Objectives Pdf

The Canadian Investment Funds Course Exam CIFC certification is a valuable credential earned by individuals to validate their skills and competence to perform certain job tasks. Your Canadian Investment Funds Course Exam CIFC certification is usually displayed as proof that you’ve been trained, educated, and prepared to meet the specific requirement for your professional role. The Canadian Investment Funds Course Exam CIFC Certification enables you to move ahead in your career later.

IFSE Institute CIFC Exam Syllabus Topics:

TopicDetails
Topic 1
  • Taxation: This section of the exam measures the skills of tax advisors and covers how different investments and accounts are taxed. It includes capital gains, interest income, dividend taxation, and the tax treatment of registered and non-registered accounts.
Topic 2
  • Types of Investments: This section of the exam measures the skills of wealth managers and covers the features, risks, and benefits of various investment products. It ensures understanding of stocks, bonds, ETFs, GICs, and other instruments typically included in diversified portfolios.
Topic 3
  • Types of Mutual Funds: This section of the exam measures the skills of fund sales representatives and covers the structure, benefits, and objectives of different mutual fund categories. It includes equity, fixed income, balanced, index, and specialty funds.
Topic 4
  • Making Recommendations & Case Study: This section of the exam measures the skills of client advisors and covers the practical application of investment knowledge through real-world client scenarios. It involves synthesizing client information to make suitable investment recommendations.
Topic 5
  • Suitability: This section of the exam measures the skills of financial planners and covers how to determine whether an investment product matches a client's profile. It focuses on risk tolerance, time horizon, and financial goals when offering investment choices.
Topic 6
  • Regulatory Environment: This section of the exam measures the skills of compliance officers and covers the key laws, rules, and regulatory bodies that oversee the mutual fund industry. It ensures professionals understand the legal framework in which firms and representatives operate.

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IFSE Institute Canadian Investment Funds Course Exam Sample Questions (Q124-Q129):

NEW QUESTION # 124
Your client, James, would like to work beyond the normal retirement age. He comes to you for advice on his registered retirement savings plan (RRSP). What are the rules regarding terminating an RRSP?

  • A. James must terminate the plan by the end of the year he turns 65.
  • B. James must terminate the plan by the end of the year he turns 67.
  • C. James must terminate the plan by the end of the year he turns 70.
  • D. James must terminate the plan by the end of the year he turns 71.

Answer: D

Explanation:
According to the Canadian Investment Funds Course, an RRSP is a retirement savings plan that allows individuals to defer taxes on their contributions and investment income until they withdraw the funds.
However, an RRSP cannot be held indefinitely and must be terminated by the end of the year the annuitant turns 71. At that point, the annuitant has three options to withdraw the funds from the RRSP:
Make a lump-sum withdrawal, which is subject to withholding tax and income tax.
Convert the RRSP to a registered retirement income fund (RRIF), which provides a steady stream of income with a minimum amount that must be withdrawn each year.
Purchase an annuity, which offers a guaranteed income for life or for a specified period.
References: 1: Canadian Investment Funds Course - IFSE Institute 2 (Unit 9: Retirement)


NEW QUESTION # 125
Sujay contributes 3% of his $60,000 salary to his employer's defined contribution pension plan. His employer contributes the same amount to the plan. How will this affect his registered retirement savings plan (RRSP) contribution room for the year?

  • A. It will have no effect. RRSP contribution room is based on earned income only.
  • B. It will reduce Suiay's contribution room by $3,600.
  • C. It will reduce Suiay's contribution room by $1800
  • D. It will reduce Suiay's contribution room by 51,800.

Answer: B

Explanation:
Explanation
D is correct because Sujay's registered retirement savings plan (RRSP) contribution room for the year will be reduced by $3,600. This is because his employer's defined contribution pension plan is considered a registered pension plan (RPP), which affects his RRSP contribution room through a pension adjustment (PA). The PA is calculated as 18% of his earned income in the previous year minus his RPP contributions in the current year.
In this case, Sujay's PA for the current year is $3,600, which is 18% of his $60,000 salary minus his 3% contribution ($1,800) and his employer's 3% contribution ($1,800). The PA reduces his RRSP contribution room for the next year by the same amount. It will have an effect on his RRSP contribution room (A), as it is not based on earned income only, but also on RPP contributions. It will not reduce his contribution room by
$51,800 (B), as this is more than his earned income. It will not reduce his contribution room by $10,800, as this is 18% of his earned income without subtracting his RPP contributions. References: Canadian Investment Funds Course (CIFC) | IFSE Institute


NEW QUESTION # 126
Reginald is a Dealing Representative, who feels pressure from management at the beginning of every calendar year, to open new registered retirement savings plans (RRSPs) and generate RRSP contributions. It is the end of February, and Reginald is close to reaching his personal sales objectives. He just finished an appointment with a prospective new client, Orel. Orel wants to open a tax-free savings account (TFSA) to build emergency savings. However, Reginald recommended to Orel that he should first contribute to an RRSP, and then use the tax savings for a TFSA contribution. With regards to account suitability, what can be said about Reginald's advice?

  • A. Recommending an investment solution that addresses two needs, is putting Reginald's client's interest first.
  • B. Reginald is putting the client's interest first by informing Orel why he should change his investment strategy.
  • C. By convincing Orel to contribute to an RRSP, instead of a TFSA, Reginald has put his client's interest first.
  • D. Based on Orel's stated need, recommending an RRSP contribution is unsuitable.

Answer: D

Explanation:
Explanation
Orel's goal is to build emergency savings, which means he needs a flexible and accessible account that does not penalize withdrawals. A TFSA is more suitable for this purpose, as it allows tax-free withdrawals at any time and does not affect other income-tested benefits. An RRSP, on the other hand, is designed for long-term retirement savings, and withdrawals are subject to income tax and withholding tax. Moreover, RRSP withdrawals reduce the contribution room permanently, and may affect eligibility for government benefits such as the Canada Child Benefit or the Guaranteed Income Supplement.
References = Canadian Investment Funds Course (CIFC) - Module 3: Registered Plans - Section 3.1:
Registered Retirement Savings Plan (RRSP)1 and Section 3.2: Tax-Free Savings Account (TFSA)2
1: https://www.ifse.ca/wp-content/uploads/2021/08/CIFC-Module-3.pdf 2:
https://www.ifse.ca/wp-content/uploads/2021/08/CIFC-Module-3.pdf


NEW QUESTION # 127
Exchange traded funds (ETFs) that track an index and index mutual funds have many similarities. However, what is a major difference between these two products?

  • A. ETFs can be purchased continuously throughout the trading day while index funds can only be bought or sold at the end of the day.
  • B. The market price of ETFs always matches the underlying basket of securities while there can be a discrepancy in pricing index funds.
  • C. ETFs do not have management fees since they are exchange traded while index funds do incur such fees.
  • D. While ETFs are prone to tracking errors, index funds are perfectly aligned with their underlying index.

Answer: A

Explanation:
Explanation
ETFs can be purchased continuously throughout the trading day while index funds can only be bought or sold at the end of the day. This is because ETFs are traded on a stock exchange like stocks, while index funds are traded directly with the fund company like mutual funds. This difference gives ETFs more liquidity and flexibility than index funds, as investors can buy and sell ETFs at any time during market hours at the prevailing market price. Index funds, on the other hand, are priced only once a day at the end of the day based on the net asset value per unit (NAVPU) of the fund. Both ETFs and index funds are prone to tracking errors (A), which are the differences between the performance of the fund and the performance of the underlying index. Tracking errors can be caused by various factors, such as fees, expenses, dividends, rebalancing, and market conditions. The market price of ETFs does not always match the underlying basket of securities , as it is determined by supply and demand in the market. There can be a discrepancy between the market price and the NAVPU of an ETF, which is called the premium or discount. Index funds, on the other hand, are priced based on the NAVPU of the fund, which reflects the value of the underlying securities. Both ETFs and index funds have management fees (D), as they are both types of mutual funds that incur costs for managing and operating the fund. However, ETFs usually have lower management fees than index funds, as they are more passive and have lower turnover and distribution costs. References: Canadian Investment Funds Course (CIFC) | IFSE Institute


NEW QUESTION # 128
Which statement about unused registered retirement savings plan (RRSP) contribution room is CORRECT?

  • A. It can be carried forward a maximum of seven years.
  • B. It may not be more than the RRSP contribution limit for the year in which it is carried forward.
  • C. It may not be carried forward.
  • D. It can be carried forward to future years.

Answer: D

Explanation:
Explanation
Unused RRSP contribution room is the amount of RRSP contributions that you did not deduct in previous years and are available to deduct in the current year. Unused RRSP contribution room can be carried forward to future years indefinitely, until you use it up or reach the age of 71. You can find your unused RRSP contribution room on your notice of assessment or by logging into your Canada Revenue Agency account.
References: What to do with unused RRSP, PRPP or SPP contributions


NEW QUESTION # 129
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