Question 1

Frederic recently sold his units in a US dollar (USD) denominated mutual fund. He wants to convert theproceeds back to Canadian dollars (CAD). If he received proceeds of $1,200 USD from the sale and theexchange rate is $1 CAD for $0.99 USD, how much will Frederic receive in Canadian dollars?

Options :

A : $1-188.00

B : $1,200.00

C : $1, 12.12

D : $1,320.00

Answer: C

Question 2

David is reviewing a simplified prospectus and is particularly interested in one of the funds. The investmentobjective stated for this fund is to provide dividend income, capital preservation, and some potential forcapital gains. What fund is David interested in?

Options :

A : Mortgage fund

B : Preferred dividend fund

C : Equity growth fund

D : Bond fund

Answer: B

Question 3

An investor who wants to deplete their funds within the next five years is considering various withdrawalplans. Assuming the investor is less concerned about predictable annual cash flows, what withdrawal plantype is most appropriate for the investor?

Options :

A : Ratio.

B : Fixed-dollar.

C : Life.

D : Fixed-period.

Answer: D

Question 4

What best describes why mortgage funds generally have less sensitivity to changes in interest rates than bond funds?

Options :

A : Many mortgage funds also hold T-bills and mortgage-backed securities, which are less volatile

B : Interest on mortgages is usually paid monthly, while interest on bonds is typically paid semi-annually

C : Mortgage funds are highly diversified, often holding over 10,000 individual mortgages

D : Most mortgages held in mortgage funds are either NHA-insured or privately insured

Answer: B

Question 5

Megan purchases a treasury bill for $98,200. When it matures for $100,000, how does Megan treat the $1,800 difference?

Options :

A : as interest income

B : as a capital gain

C : as a dividend

D : as return of capital

Answer: A

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