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IFSE Institute CIFC Exam Questions
Canadian Investment Funds Course (Page 4 )

Updated On: 27-Feb-2026
Page 4 of 46
PDF with 224 Questions

When you buy a put option, which of the following is TRUE?

  1. You have the right to sell a set number of shares at a set price.
  2. You have the right to purchase a set number of shares at a set price.
  3. You have the obligation to sell a set number of shares at a set price.
  4. You have the obligation to buy a set number of shares at a set price.

Answer(s): A



David had $10,000 in his investment account with Dynamic Investments, a mutual funds dealer. On June 28, David wants to buy 500 units in ABC Canadian Dividend Fund that has a Net Asset Value Per Unit (NAVPU) of $14.10. His friend Robert suggests that he may get a better price if he used the strategy of dollar-cost averaging. David then instructs his Dealing Representative to place a purchase order for 100 units on the first of every month starting July 1st for the next 5 months.

The orders are executed at the following NAVPUs.

July 01, $14.00
Aug. 01, $14.50
Sep. 01, $15.00
Oct. 01, $14.25
Nov. 01, $16.50

Did David get a better purchase price following the dollar-cost averaging strategy compared to making a lump-sum purchase of 500 shares on Jun 28, 20xx?

  1. David got his 500 units at the same price as the lump sum price he would have paid.
  2. David got his 500 units at a lower price than the lump sum price he would have paid.
  3. David realizes that Dollar cost averaging is the best strategy for getting lower prices.
  4. David got his 500 units at a higher price than the lump sum price he would have paid

Answer(s): D



Your client, Helen, just received her non-registered account statement which states that one of her mutual funds made an interest income distribution during the year. She asks you how she will be taxed on the distribution.
What do you tell Helen?

  1. She will pay taxes on 50% of the distribution.
  2. She will pay taxes at her top marginal tax rate.
  3. She will pay taxes on the grossed-up amount of the income.
  4. She will pay taxes at her average tax rate.

Answer(s): B



Quinton, a Dealing Representative, meets with his client Banji. Banji's Know Your Client (KYC) indicates that her risk profile is "medium''. Banji currently has $35,000 in her account which is invested 50% in the Middleton Balanced Fund and 50% in the Hector Growth Fund. She tells Quinton that she would like to contribute an additional $10,000 to purchase the Prospect Labour-Sponsored Fund.
Which of the following statements about Banji's proposed transaction is CORRECT?

  1. Quinton can proceed with the purchase of the Prospect Labour-Sponsored Fund because it is suitable for Banji based on her current KYC.
  2. Quinton should update Banji's risk profile to "high" so that he can proceed with the purchase of the Prospect Labour-Sponsored Fund.
  3. Quinton should not proceed with the purchase of the Prospect Labour-Sponsored Fund because it is not suitable for Banji based on her current KY
  4. Quinton must provide Banji with full disclosure about the risks so that he can proceed with the purchase of the Prospect Labour-Sponsored Fund.

Answer(s): C



What type of mutual fund can invest in specified derivatives and forward contracts for grains, meats, metals, energy products, and coffee?

  1. global equity fund
  2. commodity pool
  3. labour-sponsored investment fund
  4. specialty fund

Answer(s): B






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