Anyone got complete answers to this quiz?

1. 5a_39 In technical analysis, what is a support level for a stock? A. Demand exceeds supply. B. Supply exceeds demand. C. Volume sold equals volume purchased. D. Volume purchased exceeds volume sold. 2. 5a_28. CSX0925_5a What theory concludes that there are repetitive, predictable sequences of numbers and cycles found in nature and similar predictable patterns in the movement of stock prices? A. Elliott Wave Theory. B. Random Walk Theory. C. Credit-Debit Balance Ratio. D. Rational Expectations Hypothesis. 3. 5a_08. Question 15 1 Which of the following statements best reflects the Efficient Market Hypothesis? A. Actively managed portfolios consistently outperform passively managed portfolios. B. Past price movements in stocks enable investors to predict future price movements. C. Investors should not be able to consistently outperform the market. D. Equities will outperform fixed income securities over the longterm. 4. 5a_20. Question 23 1 If the Bank of Canada raises short-term interest rates by 100 basis points, which of the following situations would major Canadian banks have to deal with? A. A drop in ordinary losses. B. A squeeze on profits. C. An increase in superficial losses. D. Short sale gains. 5. 5a_02. 8-5 2_5a What can the Bank of Canada do to attract international investors to the Canadian bond market? A. Raise Canadian corporate taxes. B. Maintain high real interest rates in Canada. C. Pursue a policy that causes the Canadian dollar to fall. D. Issue more Government of Canada bonds. 6. 5a_47b Which of the following is most likely to result from an increase in the dividend tax credit? A. Decrease in disposable income of retired Canadians. B. Increase in prices of Canadian dividend-paying shares. C. Increase in proportion of Canadian taxes paid from investment income. D. Decline in price of mutual funds with preferred share investment mandates. 7. 5a_29. CSX0926_5a Which of the following price patterns is considered a buy signal? A. The formation of a top head and shoulders pattern. B. Price breaks through the moving average from below on heavy volume. C. Price breaks through the moving average from above on heavy volume. D. The advance/decline line flattens out after a long increase. 8. 5a_13. 8-13_5a How do companies in growth industries usually finance their expansion? A. Using retained earnings. B. Using the proceeds of tax refunds. C. Using the proceeds of new bond issues. D. Using dividends received from subsidiary companies. 9. 5a_07. CSX0906_5a Which of the following factors is likely to have a positive impact on Canadian equity prices? A. Income tax rates are increased in an effort to balance the budget. B. The U.S. federal reserve increases U.S. short-term interest rates to combat inflationary pressures. C. Non-resident purchases of stocks increase. D. Downward pressure continues on the value of the Canadian dollar. 10 5a_37. GQuestion #65 . On which of the following assumptions is technical analysis not based? A. All known market influences are fully reflected in market prices. B. The management practices of a company will influence its future stock price. C. Stock prices move in discernable trends that tend to persist for relatively long periods of time. D. The future repeats the past. 11 5a_45 . Which fiscal policy action might a government take specific to protecting the domestic shoe manufacturing industry? A. Increase in import tariffs. B. Reduction in general sales tax. C. Increase in government spending. D. Reduction in personal income tax. 12 5a_44 . Calculate what forecast might be made for the share price of BIB Inc. if projected earnings are $4 per share and the company has historically traded at a P/E of 20 during similar economic periods, which is similar to the P/E of BIB's industry. A. $5 B. $20 C. $24 D. $80 13 5b_40 . Companies A,B,C and D are similar in size and other characteristics. Based on the following, select the share that is the most attractive to purchase for an aggressive investor, based on a subgroup P/E of 15.8. B. Company B: P/E 22.9, rising earnings C. Company C, P/E 11.9, rising earnings D. Company D, P/E 16.8, constant earnings. 14 5b_21. Question 22 1 . Standard Electronics and Northern Electronics are two direct competitors in the retail industry. On its balance sheet, Standard Electronics shows a higher degree of financial leverage. Other things constant, which of the following would occur if the economy suddenly experiences a downturn? A. Standard Electronics would be more affected. B. Both companies would suffer lost revenue on an equal basis. C. Standard Electronics would likely have more earnings available for common shareholders. D. Northern Electronics operations are more affected by the market downturn. 15 5b_27. Question 32 1 . Which ratio determines how effective a company was at controlling its costs? A. Dividend yield. B. Net profit margin. C. Operating cash flow ratio. D. Earnings per common share. 16 5b_08. CSX0910_5b . Which of the following statements is true regarding the Interest Coverage ratio for ABC Company? Year 1 Year 2 Year 3 Year 4 Year 5 Interest Coverage 3.15x 4.22x 2.25x 1.50x 2.50x A. ABC s ability to meet its interest charges worsened over the period. B. ABC s ability to meet its interest charges improved over the period. C. ABC s net earnings likely rose over the period. D. ABC s short-term debt likely fell over the period. 17 5b_23. Question 26 1 . Blair is researching a biotech company's liquidity and whether the firm can meet its financial obligations in difficult times. Which of the following ratios would best assist Blair in his analysis? A. Quick ratio. B. Price-earnings ratio. C. Price-to-book ratio. D. Put /call ratio. 18 5b_07. CSX0907_5b . Company A and Company B are similar sized companies, producing a similar product, and have been in existence for a similar length of time. Company A has a higher proportion of debt and preferred shares in its capital structure than Company B. The business cycle is moving into an expansion phase. What effect would you expect this to have on the two companies' earnings, and which company would be more affected? A. Earnings would increase and Company A would be more affected. B. Earnings would increase and Company B would be more affected. C. Earnings would decrease and Company A would be more affected. D. Earnings would decrease and Company B would be more affected. 19 5b_29. Question 34 1 . Which ratio is used to determine a company's ability to meet interest and long-term debt payments? A. Quick ratio. B. Asset coverage. C. Working capital ratio. D. Operating cash flow. 20 5b_12. CSX0917_5b . What would happen if a firm's share of profit from an associate increased while other financial metrics remained constant? A. The net profit margin ratio increases. B. The interest coverage ratio decreases. C. The cash flow/total debt ratio increases. D. The fully diluted earnings per share ratio decreases. 21 5b_05. 8-21_5a . What would happen if a firm increased its current liabilities while keeping all other financial metrics constant? A. Increase the working capital ratio. B. Decrease the asset coverage ratio. C. Decrease the inventory turnover ratio. D. Increase the Debt/Equity ratio. 22 5b_32 . Which category of ratio would you utilize if you were attempting to determine how well management is making use of the company's resources? A. Value ratios. B. Liquidity ratios. C. Risk analysis ratios. D. Operating performance ratios. 23 5b_16. CSX0936_5b . Which is the most accurate statement concerning the cash flow/total debt outstanding ratio? A. This ratio indicates whether a company's earnings are sufficient to deal with future adverse conditions. B. This ratio shows the net tangible assets of a company available to cover the total debt outstanding. C. This ratio measures a company's ability to pay interest charges on its debt. D. This ratio gauges a company's ability to repay all the funds it has borrowed. 24 6a_21 . What measure denotes a perfect positive correlation in a portfolio? A. -1 B. 0 C. +1 D. +100 25 John is 32 years old, single, and lives at home with his parents. He earns $60,000 a year, with great benefits, including a generous pension plan, as an urban planner with his local municipality. Over the past several years, John has amassed an RRSP that is currently worth $100,000. He does not have any significant investments outside of his RRSP. Based on this information, what should John's primary objective be for his RRSP investments? A. Income. B. Growth. C. Tax minimization. D. Safety of principal. 26 6a_19 . What statistical measure is used to link the risk of individual equity securities to the market as a whole? A. Beta. B. Alpha. C. Variance. D. Standard deviation. 27 6a_09. 9-17 2_6a . What is a characteristic of growth equities? A. Predictable earnings. B. Lower dividend payouts than value shares. C. P/E is of little significance. D. Greatest risk of any equity category. 28 6a_16. 9-25_6a . What is the most likely reason for an investor to keep a consistently high portion of his or her portfolio in cash equivalent securities? A. To outperform the benchmark. B. To provide continuous liquidity. C. To pay ongoing portfolio expenses. D. To take advantage of investment opportunities as they arise. 29 . What does the ex-post rate of return measure? A. The expected return. B. The compound return.> C. The after-the-fact return. D. The current return less inflation. 30 6a_04. CSX1102_6a . An investor's portfolio currently consists of the common shares of 2 companies: ABC Bank and XYZ Gold. Which other securities can be added to minimize the overall risk of this portfolio? A. Shares of other bank and gold companies. B. Government or high quality corporate bonds. C. Shares of industrial and retail firms. D. Bonds of pharmaceuticals companies. 31 6a_18. 9-26 2_6a . How is diversification achieved in fixed-income portfolios? I. By investing in domestic and foreign bonds. II. By investing in bonds with a range of maturities. III. By investing in bonds with different credit ratings. IV. By investing in bonds with different coupon rates. A. II only. B. I and IV only. C. II and III only. D. I, II, III, and IV. 32 6a_20 . What risk is taken when an investor purchases a security with a limited secondary market? A. Default risk. B. Business risk. C. Liquidity risk. D. Non-Market risk. 33 . Last year, an investor earned a 5% real rate of return on his portfolio. If inflation last year was 3%, what was the approximate nominal rate of return on his portfolio? A. 2% B. 3% C. 5% D. 8% 34 6a_07. CSX1110_6a . Darren holds 3 securities in his portfolio: Security Market Value Expected Return MG Corp $5,000 20% TC Corp $1,500 -10% PH Corp $4,000 12% What is the expected rate of return on the overall portfolio? A. 7.3% B. 9.37% C. 12.66% D. 15.55% 35 6a_22 . What stage in the Portfolio Management Process must be completed before an advisor can determine an asset allocation strategy for a client? A. Select investment styles. B. Monitor the economy and the client. C. Design an investment policy statement. D. Evaluate portfolio performance 36 6b_36 . Select the type of manager who would be interested in a security with a low P/E ratio, low price/cash flow and a high dividend yield. A. Value managers. B. Growth managers. C. Credit quality managers. D. Sector rotation managers. 37 . Calculate the Sharpe ratio for a portfolio with a return of 10% and a standard deviation of 1.2 during a period in which the risk free rate is 4%. A. 5.0 B. 6.0 C. 6.2 D. 8.8 38 6b_19. 9-44_6b . What is the typical term-to-maturity for the high yield bonds in a fixed income manager's portfolio? A. More than 10 years. B. 5 to 10 years. C. 3 to 5 years. D. Less than 3 years. 39 6b_35 . What term is used to refer to the investment strategy of purchasing fixed-income securities with consecutive terms to maturity? A. Swaps. B. Laddering. C. Spread trading. D. Term to maturity. 40 6b_05. 7000-CSX1117_ . Beth is 49, has no children, a secure job, and annual after-tax income of $55,000. While comfortable with investing, she is still slightly risk averse. Her total monthly expenses are manageable based on her and her husband's after tax income. Her husband's annual after-tax income is $35,000. Both have comprehensive employer paid health and dental plans. Each has a fully-paid employer pension plan, sufficiently generous that each has the minimum possible RRSP contribution room accrual each year. Annually, they take vacations costing $3,500, and make charitable contributions of $3,600. Beth has inherited $250,000 in cash. Which asset mix would be most appropriate for her? A. Cash 15% / Fixed Income 65% / Equities 20% B. Cash 5% / Fixed Income 30% / Equities 65% C. Cash 10% / Fixed Income 80% / Equities 10% D. Cash 5% / Fixed Income 0% / Equities 95% 41 . When the dividend discount model is used to explain the equity cycle, which of the following factors is assumed to stay constant? A. Dividends. B. Equity prices. C. Interest rates. D. Growth rates. 42 6b_39 . Select the investment manager whose central focus is the prospects for the economy. A. A sector rotation manager. B. A value manager. C. A growth manager. D. A spread trading manager. 43 6b_14. CSX1136_6b . Which of the following investment strategies are growth managers most likely to employ? A. Those that focus on specific stock selection with a researchintensive approach. B. Those that pursue long-term growth through a buy-and-hold process. C. Those that focus on current and future earnings of individual companies, specifically EPS. D. Those that analyze the prospects for the overall economy and assume most sectors will outperform. 44 6b_22. CSX1133_6b . Which investor is best suited to an investment objective of primarily capital gains? A. A salaried person who relies on investment income to meet the costs of raising and educating his children. B. A well-paid young executive with excess income preparing for early retirement. C. A young couple investing their savings for the eventual purchase of a house. D. A retired couple whose pension income is insufficient to provide for their living expenses. 45 . Which of the following statements is true about the link between the equity cycle and the economic cycle? A. The equity cycle occurs independently of the economic cycle. B. The equity cycle tends to lead the economic cycle. C. The equity cycle tends to follow the economic cycle with a lag. D. The equity cycle is counter-cyclical to the economic cycle. 46 6b_04. Question 53_6 . You are evaluating a new client in order to determine an appropriate asset mix for her investments. Your client is 45, single, with no children and no expectation of ever having any. She has been investing extensively in a wide range of investment products, and is quite comfortable with risk. Her goal is to retire at 55, and then to travel extensively. She has no wish to leave an estate. What is the most appropriate asset mix for her? A. Cash 10%/Fixed Income 40%/Equities 50%. B. Cash 5%/Fixed Income 25%/Equities 70%. C. Cash 20%/Fixed Income 70%/Equities 10%. D. Cash 5%/Fixed Income 75%/Equities 20%. 47 6b_27. QUESTION 4.2_ . At what point in the equity cycle are interest rates "normalized"? A. Stock market trough. B. Expansion phase of equity cycle. C. Contraction phase. D. Expansion phase to peak. 48 7A_01 . Your client has both excellent investment knowledge, a high ability to tolerate risk, and seeks high investment returns. Choose the managed product that would be most appropriate for his particular investment philosophy. A. Hedge fund. B. Segregated fund. C. Exchange-Traded Fund. D. Labour-sponsored venture capital corporation (LSVCC). 49 . If a pooled fund trust with 500,000 units outstanding earns $100,000 in investment income, how much investment income will be claimed by a unitholder with 200 units? A. $0.00 B. $40.00 C. $400.00 D. $4,000.00 50 7A_02 . Your client is bullish on the market but wants the security of an annual interest payment and guaranteed principal amount. He has given you a list of securities that he is considering. Which of these would you recommend? A. Split Shares. B. Index-Linked GIC. C. Principal-Protected Notes. D. Mortgage-Backed Securities. 51 7b_22 . Who is a front-end load on a mutual fund purchase payable to? A. Custodian. B. Distributor. C. Representative. D. Transfer and Registrar. 52 7b_05. CSX0726 . In February, an investor in a 45% tax bracket buys 100 units of a mutual fund for $20 a unit in a non-registered account. In April, he receives $1.50 per unit in capital gains distributions, and in May, sells the units for $30 a unit. Ignoring any other costs, considerations, or potential capital losses on other investments, what amount would he owe in income tax as a result of this transaction? A. $258.75 B. $345.00 C. $388.13 D. $517.50 53 . Who directly pays the Management Fees of a mutual fund? A. The fund. B. The unit holders. C. The fund managers. D. The representatives. 54 7b_16. Question 3 1 . James is registered solely as a mutual fund salesperson. He is selling a universal life insurance policy to a new client and has discovered that the client wants to top up her RRSP this year by investing in a labour-sponsored mutual fund. James receives the buy order and purchases the fund. What unacceptable sales practice has taken place with James and his new client? A. Sale of unqualified securities. B. Front running. C. Selling without a license. D. Sale of non-registered mutual funds. 55 7b_02. CSX0702 . Which of the following represents the total of all expenses charged to a mutual fund, excluding trading or brokerage costs? A. Load. B. Trailer Fee. C. Management Fee. D. Management Expense Ratio. 56 7b_21 . What organization is appointed by a mutual fund corporation to collect money received from the fund's buyers and from portfolio income and arranges for cash distributions through dividend payments, portfolio purchases and share redemptions? A. Registrar. B. Custodian. C. Distributor. D. Fund manager. 57 . Which of the following is a rule that applies to the distribution of mutual funds by financial institutions (FIs)? A. FIs are strictly prohibited from distributing mutual funds sold by a third party. B. FIs can sell mutual funds only through affiliated dealers, but dealers do not have to be registered in every province where securities are sold. C. Dually employed salespersons cannot approve loans to finance mutual fund purchases unless approved by the FI's senior lending officer. D. Full disclosure of dual employment is not required as long as customers of the FI are dealing with a person registered to sell mutual funds. 58 7c_13 . What is used to weight the individual cash flows in the Modified Dietz Method? A. Time held in the portfolio. B. Relative size to asset base. C. Type or category of cash flow. D. Percent of asset allocation in asset mix. 59 7c_20 . Select the fund best suited for an investor with a preference for market timing strategies and who does not believe in the Rational Expectations Theory. A. ABC Index Fund B. DEF Balanced Fund. C. XYZ Asset Allocation Fund. D. REM Steel Sector Fund. 60 7c_01. 10-17 . Joshua is a real risk taker and wants to purchase a mutual fund offering the potential for the greatest return. Based solely on the relationship between risk and return of various types of mutual funds, which of the following funds would be most suitable? A. Equity fund. B. Real estate fund. C. Dividend fund. D. Asset allocation fund. 61 7c_14 . Select the fund best suited for a Canadian risk-averse investor with a time horizon of six months. A. Asset allocation fund. B. US money-market fund. C. Canadian money-market fund. D. Canadian income balanced fund. 62 7c_09. Question 4 1 . An investor purchases $25,000 in mutual fund units on January 1st. On April 1st, he receives $580 in dividends and reinvests them in additional units. On July 1st, he purchases an additional $5,000 in units. As of September 1st, he holds a total of 2,200 units. If he redeems 1,000 units at a price of $32 on September 2nd, and assuming no other transactions have occurred, what is the book (cost) value of the remaining units? A. $13,900 B. $16,680 C. $22,935 D. $32,580 63 7c_07. CSX0743 . Which of the following types of mutual funds would be most suitable for an investor whose main objective is long-term capital growth? A. Dividend fund. B. Bond fund. C. Balanced fund. D. Equity fund. 64 7c_17 . An investor with a life expectancy-adjusted withdrawal fund has an actuarially determined life expectancy of 85 years. She begins the plan at age 70. Determine the amount she can withdraw in Year 3, assuming that all withdrawals are done at the beginning of the year and the fund had a value at the end of Year 2 of $560,000. A. $37,333.33. B. $43,076.92. C. $46,666.67. D. $50,909.09. 7c_06. CSX0742 65 . Which of the following terms best describes the type of risk that is beyond the control of the fund manager? A. Diversifiable risk. B. Integrated risk. C. Systematic risk. D. Capital deficiency risk. 66 7d_31 . What is an advantage of designating an irrevocable beneficiary in a segregated fund contract? A. Increased flexibility. B. Higher guaranteed amounts. C. Beneficial tax treatment of allocations. D. Ability to time bequests to surviving children. 67 7d_27. Question 63 1 . Which of the following statements correctly identifies when the reset feature of segregated funds benefits an investor? A. In a flat market. B. In a rising market. C. In a falling market. D. In a rising or falling market. 68 7d_18. CSX0754 . The maturity guarantees offered by segregated funds are only as good as the creditworthiness of the insurer issuing the contracts. Which of the following organizations provides a level of protection outside the company itself? A Assuris. . B. The Office of the Superintendent of Financial Institutions (OSFI). C. Provincial regulators. D. Federal regulators. 7d_01. 32. 10-11 69 . Mario opted to reset his $75,000 investment in a segregated fund after five years, when its market value was $84,000. Ten years after the reset date his segregated fund policy matured at a market value of $91,000. Which of the following represents the capital gain Mario incurred once his segregated fund policy matured? A. $7,000. B. $8,000. C. $9,000. D. $16,000. 70 7e_04. 10-3 . What is indicated by a hedge fund's liquidity dates? A. When the fund's short positions are expected to be covered. B. When the fund is required to hold more than 100% of its assets in cash. C. When investors in the fund can redeem their units. D. When new investors can buy units in the fund. 71 7e_22 . What is the term used to refer to the time period during which initial investments cannot be redeemed from a hedge fund? A. Lockup period. B. Deferral period. C. Accreditation period. D. Pre-redemption period. 72 7e_01. 10-1 . Which of the following legal documents would an investor acquire to find out more about the risks and objectives of a hedge fund? A. A preliminary prospectus. B. An offering memorandum. C. A final prospectus. D. An annual information form. 7e_17. NEWSETP05CH12 73 . A hedge fund with $100 million in capital purchases shares worth $100 million and goes short shares worth $80 million. What is the fund's leverage factor? A. 0.8x B. 1.0x C. 1.8x D. 1.2 74 7e_07. 10-7 . The primary objective of the Davidson Hedge Fund is to invest in the equity or debt of companies that are facing bankruptcy or in the midst of a reorganization. Which of the following hedge fund strategies is being used? A. Distressed securities funds. B. Relative value funds. C. Dedicated short bias funds. D. Equity market neutral funds. 75 7f_19 . What type of closed-end fund has the right to periodically buy back their outstanding shares? A. Interval funds. B. Private equity funds. C. Business income trusts. D. Real-estate Investment Trusts. 76 7f_20 . What is the underlying asset of an Inverse Leveraged ETF? A. Derivatives. B. Commodities. C. Consumer debt. D. Exchange-Traded funds. 7f_04. 3000-CSX0724 77 . Dianne is 48, employed full-time and a Canadian resident. She invested $10,000 in a Labour Sponsored Venture Capital Corporation (LSVCC) and received the maximum federal tax credit and provincial credits of 20%. Dianne decides to redeem her investment 3 years after the initial purchase. How much of the federal tax credit would be subject to recapture? A. $0 B. $450 C. $750 D. $2,750 78 7g_04 . What fee-based arrangement would be appropriate for a client who is leaving the country for a short period of time and will therefore be unable to manage her investment funds? A. Family Office. B. Managed Account. C. Discretionary Account. D. Separately Managed Account. 79 7g_06 . Which of the following statements regarding discretionary accounts is true? A. Salespersons can solicit discretionary accounts if they also act as trading partners, directors or officers. B. Discretionary agreements from clients must be submitted in writing and approved by a director, partner or officer. C. Discretionary accounts are managed on a continuous basis, usually for a management fee. D. Trades executed through discretionary accounts do not require approval of a partner, director or officer as long as the client's investment objectives are clearly specified. 80 7g_03 . A client likes the idea of a Fund of Funds, but wants a higher degree of customization and the ability to have a unique asset allocation within a fee-based arrangement. What might you recommend? A. Mutual Fund Wrap. B. Multi-disciplinary account. C. Separately Managed Account. D. Proprietary Managed Program. 7g_05 81 . A client wishes to invest in ETFs but wants professional management for selection and management of the asset allocation within the portfolio. What fee-based arrangement would be appropriate? A. ETF Wrap. B. Mutual Fund Wrap. C. Discretionary Account. D. Multi-Disciplinary Account 82 7g_02 . In simple discretionary accounts, under what circumstances may an investment advisor implement an order? A. Never. B. Written direction from client. C. When a model portfolio is implemented. D. Written approval of a partner or director. 83 7h_06 . Which of the following is a characteristic of index-linked guaranteed investment certificates (GICs)? A. Investors can fully participate in market upswings. B. Investors are protected against issuer default through Assuris. C. Investors fully participate in dividends paid out by companies within the index. D. Investors tend to find measuring the long-term performance of index-linked GICs problematic. 84 7h_05 . Which of the following is a characteristic of mortgage-backed securities (MBSs)? A. MBSs are highly liquid and usually transferable securities. B. MBSs are generally insulated from market volatility and have the potential to make money in any environment. C. MBSs are low-risk securities, guaranteed by the Canada Mortgage and Housing Corporation. D. MBSs' payments are taxed as dividend income, allowing investors to avoid high tax costs. 7h_01 85 . Calculate the overall approximate return on a 6-year XYZ Market Linked GIC that is based on the S&P/TSX Composite Index. Assume that the GIC has a 25% cap rate, and that the relevant index had an initial index level of 9,700 and an ending index level of 14,000. A. 11.08% B. 25.00% C. 31.00% D. 44.33% 86 8a_04. CSX1005_8a . An investor purchased a bond three years ago for $10,650 plus accrued interest of $175. The bond was sold this year for $10,980 plus accrued interest of $210. What capital gain or loss resulted from these transactions? A. A capital loss of $365. B. A capital gain of $295. C. A capital gain of $330. D. A capital gain of $365. 87 8a_24 . What financial institution(s) can sell deferred annuities to the general public? A. Life insurance companies. B. Schedule I banks. C. Schedule II banks. D. Life insurance companies and Schedule III banks. 88 8a_17. CSX1006_8a . An individual has RRSP contribution room of $12,700. His spouse has RRSP contribution room of $3,500 and contributed $2,500 to her RRSP this year. If the individual contributed $5,000 to his own plan, how much can he contribute to a spousal RRSP plan? A. $1,000 B. $3,500 C. $ 7,700 D. $12,700 8a_28 89 . An investor in a 40% tax bracket contributes 5,000 shares of ABC to his RRSP. The adjusted cost base of the securities is $10,000, and the current market value is $15,000. Calculate the tax owing as a result of the transaction? Ignore the tax benefit of the RRSP contribution itself. A. $0.00 B. $1,000 C. $2,000 D. $5,000 90 8a_10. CSX1013_8a . In which of the following situations will the Canada Revenue Agency (CRA) treat share disposition as fully taxable income, rather than as capital gains? A. When the taxpayer has a history of occasional buying and selling of shares and long periods of ownership B. When the taxpayer has limited knowledge of securities markets and purchases shares only in registered accounts C. When the taxpayer is strictly purchasing dividend-generating securities D When the taxpayer is in the business of trading securities to . realize speculative profit from the shares 91 8a_22. Question 47 1 . An individual has RRSP contribution room of $18,450. His spouse has RRSP contribution room of $8,500 and has contributed $4,400 to her RRSP this year. If the individual contributed $8,000 to his own plan, how much can he contribute to a spousal RRSP plan? A. $4,100 B. $8,500 C. $ 10,450 D. $18,450 92 8a_24_ . You have purchased 100 units of a new issue for $65 a share. The units consist of one XYZ preferred share and one XYZ common share. At the time the new issue is cleared for sale, the market price of XYZ preferred shares is $45 and XYZ common shares is $21. What is the adjusted cost base of the common shares? A. $0.00 B. $2,100.00 C. $2,068.18 D. $4,333.33 93 8b_21 . Dwayne, an IA, is leaving the office on Monday for a doctor's appointment. He advises his assistant, an unlicensed individual, that if Nick Karan calls about an order he and Dwayne had discussed earlier that day, she is to take down the client order and input it into the firm's trading system. What Standard of Care is Dwayne violating? A. Client Orders. B. Due diligence. C. Trades by Registered and Approved Individuals. D. Complete and Accurate Information Relayed to Client. 94 8b_14. CSX1148_8b 2008 . Ian is an IA with MoneyTree Inc., an IIROC member firm. Which of the following statements regarding Ian's personal trading activities while employed with a member firm is false? A. Personal trading activities must be conducted in a professional and responsible manner. B. Personal trading activities should not impede on the service levels provided to clients. C. Personal trading activities should be kept to reasonable levels. D. All personal trading activities must be disclosed to the clients. 95 8b_11. 11-10_8b . Which of the following best describes a fiduciary relationship in the securities industry? A It is a principal agent relationship where the agent has a certain . vulnerability as the principal has greater authority. B. It is a principal third party relationship where the principal may be somewhat defenseless as the third party has greater control. C. It is a principal third party relationship where the third party has a certain vulnerability as the principal has greater authority. D. It is a principal agent relationship where the principal may be somewhat defenseless as the agent has greater control. 96 8b_05. 11-3_8b . By and large, at what stage of the Life Cycle Approach would you suggest to a client that he or she maximizes growth with their investments? A. Early earning years. B. Mid earning years. C. Peak earning years. D. Retirement years. 97 8b_03. 11-13_8b . Nathan, a financial planner has just collected all pertinent data for Jean-Marc and Monique who are new clients looking for a comprehensive financial plan. After gathering the couple's financial details, which of the following steps must Nathan take in the financial planning process? A. Identify financial problems and constraints B. Develop a written financial plan C. Discuss various investment strategies D. Identify goals and objectives 98 8C_01 . What is the primary source of investable funds for insurance companies? A. Premiums. B. Settlements. C. Distributions. D. Contributions. 99 8C_02 . What is the investment horizon for a typical pension fund? A. Short-term. B. Mid-term. C. Long-term. D. Indeterminate. 10 8C_03a 0. What is an example of a reactive trade for a liability trader? A. Making a market in a security to fill an institutional client's sale order. B. Building an active market in a security to create an underwriting deal. C. Accumulating inventory in a well-reviewed stock in the capital account. D. Approaching a dealer to become the counterparty on a derivatives contract