Free IFC Practice Test Questions 2026

In which province must registered dealing representatives notify their securities administrator of a personal bankruptcy?

A. Saskatchewan

B. Nova Scotia

C. Ontario

D. British Columbia

Maureen is 65 years old and will be retiring soon. She has a modest portfolio of mutual funds that focus on growth. As she approaches retirement, Maureen wants to switch to investments that provide steady income with low to medium risk. Given Maureen’s wishes, which of the following mutual funds would be suitable for her?

A. money market funds, mortgage funds, bond funds

B. money market funds. Canadian dividend funds, sector funds

C. Canadian dividend funds, global equity index funds, bond funds

D. money market funds, global equity funds, bond funds

Matthew is planning on making the following investments in December:

Assuming all four investments have performed well throughout the year, which investment will trigger the highest unexpected taxes?

A. JKL

B. DEF

C. ABC

D. GHI.

Ken is a member of his employer’s Defined Benefit Pension Plan (DBPP). Which of the following statements about Ken’s plan is CORRECT?

A. Contributions to the plan do not result in a Pension Adjustment (PA) for Ken.

B. The amount Ken receives in retirement depends on the performance of the investments he has selected within the plan.

C. The amount that Ken will receive at retirement is not guaranteed.

D. Income received from the plan is eligible for pension income splitting even if Ken retires before 65.

In a mutual fund sales representative's interaction with clients, what term best describes a set of moral principles that incorporate both the letter of the law and the spirit of the law?

A. Compliance

B. Ethical conduct

C. Fiduciary

D. Professional responsibility

The following data is available for an investment:
Purchase value
$125
End of the year value
$133
Quarterly dividend amount
$1
What is the annual return for this investment if held for one year?

A. 9.6%

B. 3.2%

C. 9.0%

D. 7.2%

AWB Inc. requires new capital to finance a business opportunity. They expect to generate substantial growth from this project and repay the capital within five years. Which financial instrument should the company issue to finance this opportunity?

A. Debentures

B. Derivatives

C. Common shares

D. Investment fund

The portfolio manager of the High Income Fund has 90% of the mutual fund invested in bonds. What is a reason for holding bonds in a mutual fund portfolio?

A. Bonds provide regular interest income which can be flowed out directly to investors.

B. Bonds produce regular capital gain payments which result in preferential tax treatment for unitholders.

C. Coupon payments paid by bonds from large Canadian corporations are eligible for preferential tax treatment.

D. To increase the dividend yield and credit quality of the mutual fund

Your client earns $100,000 from employment and $10,000 from investments each year. Her bills total $95,000 annually. What is her discretionary income?

A. $5,000

B. $20,000

C. $15,000

D. $10,000

Which investor's needs would be BEST met with an income trust?

A. Tina wants a product that guarantees the return of at least 75% of her capital upon maturity of the contract or upon her death.

B. Leanne wants a product that employs alternative strategies such as leverage and short selling to amplify returns.

C. Gary wants to invest in a product which provides a consistent cash flow of interest, royalties, and lease payments passed along to unitholders.

D. Phil wants to invest in a product where the performance is linked to that of an underlying asset and the issuer is obligated to repay his principal at maturity.

Anthony purchased 500 units of XYZ Fund at a price of $12.00 per unit. Near the end of the year, the mutual fund made a distribution of $1.50 per unit. The net asset value per unit (NAVPU) immediately before the distribution was $16.50. Anthony immediately reinvested his distribution at the new NAVPU. How many new units did Anthony purchase when his distribution was reinvested?

A. 45.50

B. 50.00

C. 52.60

D. 55.40

Clinton is meeting with his advisor Zaydin to discuss the best ways to regularly invest from his paydays. Clinton is concerned that he may be unable to commit to regular contributions versus lump-sum deposits. Why would Zaydin recommend an accumulation plan to his client?

A. Investment discipline

B. Reduced fees

C. Increases market timing opportunities

D. Lowered NAVPS