IFSE EXAM 19

pdf

School

George Brown College Canada *

*We aren’t endorsed by this school

Course

4502

Subject

Finance

Date

Apr 26, 2024

Type

pdf

Pages

5

Report

Uploaded by KidRiverApe4

4/22/24, 3:57 AM IFSE Institute Canadian Investment Funds Course - CIFC Exam Questions [2024] https://www.pass4test.com/CIFC-exam-questions.html 1/5 (/) (https://mylivechat.com/chatnoscript.aspx?HCCID=66608068) Cart (/cart.php) My Orders (/member.php?ac=myorder) Limited Time Discount Offer! 15% Off - Ends in 02:08:01 - Use Discount Coupon Code P4TCOM2024 IFSE Institute Canadian Investment Funds Course - CIFC Exam Questions QUESTION NO: 111 Greg, one of your clients, has been advised by a friend to invest in open-end mutual funds. He is not sure about the differences between open and closed-end funds. What would you tell Greg about open-end funds? Home (/) Products (/allproducts.php) Certifications (/certifications.php) Free Demo (/samples.php) Guarantee (/page_guarantee.html) How to pay? (/page_howtopay.html) F.A.Q (/page_faqs.html) A. The number of units is not fixed, and varies with investor demand and redemption orders. B. Investors holding open-end funds can buy and sell their mutual funds anytime the stock market is open. C. Units are bought and sold amongst the unitholders. D. Initial shares in the mutual fund are allotted through an initial public offering (IPO) Chat now
4/22/24, 3:57 AM IFSE Institute Canadian Investment Funds Course - CIFC Exam Questions [2024] https://www.pass4test.com/CIFC-exam-questions.html 2/5 Hide answers/explanation Correct Answer: A Explanation According to the Closed-End Funds vs. Open-End Funds: What's the Difference? - Investopedia, open-end funds are mutual funds that can issue an unlimited number of shares to investors. The number of units is not fixed, and varies with investor demand and redemption orders. Investors buy and sell open-end funds directly from the fund company at the net asset value (NAV) of the fund, which is calculated at the end of each trading day. Open-end funds are not traded on an exchange or in the secondary market. QUESTION NO: 112 Wilma has always used the services of a tax preparation firm to file her taxes but is skeptical that she has really benefitted. This year she plans to file her own taxes for the first time. What would be useful for her to know? Hide answers/explanation Correct Answer: A Explanation Tax deductions are amounts that reduce your total income before calculating your tax payable. They lower your marginal tax rate, which is the tax rate that applies to your last dollar of income. For example, if Wilma's total income is $50,000 and she claims $5,000 in tax deductions, her taxable income will be $45,000 and her marginal tax rate will be lower than if she had no deductions. Therefore, A is the correct answer. References: All deductions, credits, and expenses - Personal income tax - Canada.ca A. Wilma's marginal tax rate may be lowered when tax deductions are applied to her total income. B. Wilma's top marginal tax rate will be applied to every taxable dollar when her tax return is filed. C. Wilma's tax deductions permit her to reduce her tax payable dollar-for-dollar. D. Wilma's non-refundable tax credits may only reduce her taxable income dollar-for-dollar. Chat now
4/22/24, 3:57 AM IFSE Institute Canadian Investment Funds Course - CIFC Exam Questions [2024] https://www.pass4test.com/CIFC-exam-questions.html 3/5 QUESTION NO: 113 Pierre buys a call option on a stock. What is the implication of this transaction? Hide answers/explanation Correct Answer: A Explanation According to the What Is a Call Option and How to Use It With Example - Investopedia, a call option is a contract that gives the buyer the right, but not the obligation, to buy an underlying stock at a specified price (the strike price) within a specified time period (the expiration date). The seller of a call option is obligated to sell the stock if the buyer exercises the option. Pierre buys a call option on a stock, which means he has the right to buy the stock if he exercises the option. He can also choose not to exercise the option or sell it before expiration. QUESTION NO: 114 Which statement regarding Canada's income tax system is CORRECT? Hide answers/explanation Correct Answer: A A. Pierre has the right to buy the stock if he exercises the option. B. Pierre is obligated to sell the stock if the option is exercised. C. Pierre has the right to sell the stock if he exercises the option. D. Pierre is obligated to buy the stock if the option is exercised. A. Federal and provincial income tax brackets are both progressive and each respective jurisdiction determines the tax rates that will be used. B. Once a person's taxable income reaches the next income tax bracket level, all income is subject to be taxed at the higher tax rate. C. Tax credits will reduce an individual's taxable income and may lower that person's top marginal tax rate. D. After federal and provincial tax rates have been applied to a person's taxable income, tax deductions are then applied to reduce taxes. Chat now
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help
4/22/24, 3:57 AM IFSE Institute Canadian Investment Funds Course - CIFC Exam Questions [2024] https://www.pass4test.com/CIFC-exam-questions.html 4/5 Explanation Canada's income tax system is based on a progressive tax structure, which means that individuals pay higher tax rates as their income increases. There are different tax brackets for different income levels, and each bracket has a corresponding tax rate. The federal government and each provincial or territorial government set their own tax rates and brackets, which may vary depending on the jurisdiction. Therefore, individuals pay both federal and provincial or territorial income tax, based on their taxable income and the tax rates applicable to their income brackets in their respective jurisdictions12 References = Canadian Investment Funds Course, Unit 5: Types of Investments, Lesson 6: Taxation, Section 5.6.1: Income Tax 1; CIFC prepkit, Chapter 5: Types of Investments, Question 5.6.1 2 QUESTION NO: 115 Jacinta is a Dealing Representative with WealthSource Partners Inc., a mutual fund dealer registered in Ontario. Jacinta meets with her friend Saabir, who is a licensed insurance agent. Saabir asks Jacinta for a list of Jacinta's clients so that Saabir can reach out to them to ensure that their insurance needs are being met. Which of the following statements about Jacinta sharing the list with Saabir is CORRECT? Hide answers/explanation Correct Answer: D Explanation The correct answer is D. If Jacinta shares the list with Saabir without obtaining the clients' prior consent, she will be in breach of the Personal Information Protection and Electronic Documents Act (PIPEDA). PIPEDA is the federal privacy law for private-sector organizations in Canada. It sets out the ground rules for how businesses must handle personal information in the course of their commercial activity. One of the key principles of PIPEDA is consent. This means that organizations must obtain A. If Saabir obtains prior consent from Jacinta to use the clients' personal information for a reasonable purpose, Saabir can contact the clients to inquire about their insurance needs. B. If Saabir promptly discloses that he has collected the clients' personal information from Jacinta without their consent, Saabir can use the information for a new stated purpose. C. If Jacinta determines that there is a reasonable purpose for sharing the list with Saabir, she can disclose the information to Saabir without obtaining prior consent from the clients. D. If Jacinta shares the list with Saabir without obtaining the clients' prior consent, she will be in breach of the Personal Information Protection and Electronic Documents Act (PIPEDA). Chat now
4/22/24, 3:57 AM IFSE Institute Canadian Investment Funds Course - CIFC Exam Questions [2024] https://www.pass4test.com/CIFC-exam-questions.html 5/5 Products (/allproducts.php) Certifications (/certifications.php) Frequently Asked Questions (/page_faqs.html) Live Support Demo (/samples.php) My Account (/member.php) About Us (/page_about.html) Contact Us (mailto:support@pass4test.com) Guarantee (/page_guarantee.html) Privacy Statement (/page_privacy.html) How to pay ? (/page_howtopay.html) SAP-Certifications (/SAP- CERTIFICATIONS_certification- training.html), CompTIA A+ (/A_certification-training.html), CompTIA Security+ (/Security_certification- training.html), CompTIA Network+ (/Network_certification-training.html), CompTIA Linux+ (/Linux_certification- training.html), CompTIA Project+ (/Project_certification-training.html), IBM certifications (/IBMcertificationsI_certification- training.html), IBM DB2 (/DB2_certification-training.html), SCJP (/SCJP_certification-training.html), JNCIA (/JNCIA_certification-training.html) meaningful consent from individuals before collecting, using, or disclosing their personal information, unless an exception applies. Consent must be obtained for the original purpose of collecting the information, and for any new purpose that arises later. Consent can be express or implied, depending on the sensitivity of the information and the reasonable expectations of the individual. In this scenario, Jacinta's clients' personal information is sensitive, as it relates to their financial situation and investment goals. Jacinta's clients would not reasonably expect that their information would be shared with Saabir, who is not affiliated with WealthSource Partners Inc., for the purpose of marketing insurance products. Therefore, Jacinta must obtain express consent from her clients before disclosing their information to Saabir. If she does not, she will violate PIPEDA and risk legal action from her clients or from the Office of the Privacy Commissioner (OPC). Copyright © 2001-2024 Pass4Test NETWORK CO.,LIMITED. All Rights Reserved. All trademarks used are properties of their respective owners. Disclaimer: SAP, Microsoft, Google, Amazon, Certiport, Qualtrics are Registered Trade Mark. Pass4Test doesn’t offer real ISACA exam questions. Pass4Test offers only Probable Questions and Answers. Pass4Test offer learning materials and practice tests created by subject matter experts to assist and help learner prepare for those exams. All Certification Brands used on the website are owned by the respective brand owners. Pass4Test does not own or claim any ownership on any of the brands. The site www.pass4test.com is in no way affiliated with SAP SE. Chat now