CIFC Canadian Investment Funds Course Exam Free Demo Questions – Try Before You Buy

Question 1

One of your clients, Fernando, is approaching 71 years of age and has a few questions regarding life
income funds (LIFs).
Which of the following statements about LIFs is TRUE?

A

Fernando may make contributions to his LIF if he continues working

B

Fernando is free to withdraw any amount from his LIF above the minimum amount.

C

Fernando can transfer money from his registered retirement savings plan (RRSP) to a LIF.

D

Fernando can transfer money from his locked-in retirement account (LIRA) to a LIF.

Correct Answer: D

Question 2

Wilma has always used the services of a tax preparation firm to file her taxes but is skeptical thatshe
has really benefitted. This year she plans to file her own taxes for the first time.
What would be useful for her to know?

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.

Correct Answer: A

Question 3

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

Demo IFSE Institute CIFC Exam Questions

One of your clients, Fernando, is approaching 71 years of age and has a few questions regarding life
income funds (LIFs).
Which of the following statements about LIFs is TRUE?

Fernando may make contributions to his LIF if he continues working

Fernando is free to withdraw any amount from his LIF above the minimum amount.

Fernando can transfer money from his registered retirement savings plan (RRSP) to a LIF.

Fernando can transfer money from his locked-in retirement account (LIRA) to a LIF.

Correct Answer: D

Wilma has always used the services of a tax preparation firm to file her taxes but is skeptical thatshe
has really benefitted. This year she plans to file her own taxes for the first time.
What would be useful for her to know?

Wilma's marginal tax rate may be lowered when tax deductions are applied to her total income.

Wilma's top marginal tax rate will be applied to every taxable dollar when her tax return is filed.

Wilma's tax deductions permit her to reduce her tax payable dollar-for-dollar.

Wilma's non-refundable tax credits may only reduce her taxable income dollar-for-dollar.

Correct Answer: A

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.

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

Demo Practice Mode

Demo IFSE Institute CIFC Exam Questions

One of your clients, Fernando, is approaching 71 years of age and has a few questions regarding lifeincome funds (LIFs).Which of the following statements about LIFs is TRUE?

Fernando may make contributions to his LIF if he continues working

Fernando is free to withdraw any amount from his LIF above the minimum amount.

Fernando can transfer money from his registered retirement savings plan (RRSP) to a LIF.

Fernando can transfer money from his locked-in retirement account (LIRA) to a LIF.

Correct Answer: D

Wilma has always used the services of a tax preparation firm to file her taxes but is skeptical thatshehas really benefitted. This year she plans to file her own taxes for the first time.What would be useful for her to know?

Wilma's marginal tax rate may be lowered when tax deductions are applied to her total income.

Wilma's top marginal tax rate will be applied to every taxable dollar when her tax return is filed.

Wilma's tax deductions permit her to reduce her tax payable dollar-for-dollar.

Wilma's non-refundable tax credits may only reduce her taxable income dollar-for-dollar.

Correct Answer: A

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

Demo Practice Mode

One of your clients, Fernando, is approaching 71 years of age and has a few questions regarding life
income funds (LIFs).
Which of the following statements about LIFs is TRUE?

Wilma has always used the services of a tax preparation firm to file her taxes but is skeptical thatshe
has really benefitted. This year she plans to file her own taxes for the first time.
What would be useful for her to know?

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.