Online Access Free CIFC Exam Questions

Your clients, Jessica and Ken, want to buy a house next year. You recommend a money market fund. How do you think a money market fund will help Jessica and Ken reach their goal?

• A.Money market funds provide high returns without risking the capital invested.
• B.Money market funds provide investors a guaranteed fixed rate of return.
• C.Money market funds are safe investments because their net asset value per unit does not usually fluctuate.
• D.Money market funds pay income weekly which can be automatically reinvested.

Which of the following statements about total return for money market funds is TRUE?

• A.Current yield reflects the income earned on a money market fund for the most recent 14 day period.
• B.Current yield incorporates the compounding effect.
• C.Effective yield will always be lower than current yield.
• D.Performance is displayed with both current yield and effective yield.

Marta is turning 71 years old this year. She will have to convert her registered retirement savings plan (RRSP) to a registered retirement income fund (RRIF). Which of the following statements is TRUE?

• A.She does not have to withdraw the minimum amount this year.
• B.When she converts her RRSP to a RRIF, she will incur a tax liability.
• C.She will be able to continue contributing to her RRIF and be subject to the same annual limits as her RRSP.
• D.She will be subject to annual maximum withdrawal limits.

Terri, 30 years old, is the marketing manager at Provincial Winery with an average annual income of $60,000.
Her spouse Yvette, 28 years old, is a project manager with a telecommunications firm earning
$70,000 per year. You are helping them to organize their investments and are trying to assess their financial resources.
Which of the following is the best question to ask?

• A.Do you have any children?
• B.Do you have pension plans at work?
• C.When do you need the money?
• D.What is your investment experience?

Darryl has a diversified investment portfolio of mutual funds in a non-registered account with Investwell Mutual Funds, a mutual fund dealer. Darryl's diversified portfolio is composed of 3 mutual funds. Each mutual fund is currently worth about $100,000. The ABC Canadian Equity Fund has a total return of 6%, the DEF Bond Fund has a total return of 8% and GHI Global Equity Fund has a total return of 10%. Darryl wants to make an in-kind contribution to his registered retirement savings plan (RRSP) account. He has unused RRSP contribution room of $60,000.
From a tax-efficient viewpoint, which funds contribute in-kind to his RRSP account?

• A.Move $20,000 from each of the three funds to the RRSP.
• B.Move the DEF Bond Fund to the RRSP.
• C.Move the ABC Canadian Equity Fund to the RRSP.
• D.Move the GHI Global Equity Fund to the RRSP