[Jan-2026] CISI IFC Actual Questions and Braindumps [Q196-Q217]

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[Jan-2026] CISI IFC Actual Questions and Braindumps

Pass IFC Exam with Updated IFC Exam Dumps PDF 2026

NEW QUESTION 196
Last year at age 70, Gregory opened a registered retirement income fund (RRIF). Recently, Gregory unexpectedly received a large cash gift and presently does not need to depend on any payments from his RRIF. He contacts his financial advisor Eric for guidance.
Which of the following statements by his financial advisor would be CORRECT?

Periodic contributions to a RRIF are permitted until Gregory reaches the age of 71.

Withdrawals become mandatory within the first year of the plan being started.

Gregory’s account will be subjected to no maximum withdrawal limit but to an annual minimum withdrawal.

Gregory must have attained the minimum age of 71 to open a RRIF.

NEW QUESTION 197
Last year Peter’s earned income from employment was $50,000.
Last year, after receiving a $2 per share in dividends from 500 shares in ABC Inc., a publicly-traded Canadian corporation, he sold his shares. The sale resulted in a capital gain of $15,000.

Based on the tax rates mentioned above, what is Peter’s net federal tax liability for the year? (Round to 2 decimal places).

$9,953.30

$9,193.69

$9,113.53

$9,696.15

To calculate Peter’s net federal tax liability for the year, we need to follow these steps:
* Step 1: Calculate Peter’s taxable income. This is the amount of income that is subject to federal income tax. It is equal to his earned income from employment plus his net capital gain plus his grossed-up dividend income. A net capital gain is 50% of the capital gain realized from selling an asset. A grossed- up dividend income is the actual dividend received plus a percentage of the dividend that reflects the corporate tax paid by the issuer. According to the image, the dividend gross-up rate is 15.02%.
Therefore, Peter’s taxable income is:
50000+0.5×15000+(500×2)×(1+0.1502)=68251.00
* Step 2: Apply the federal tax rates to Peter’s taxable income according to the tax brackets shown in the image. The federal tax rates are progressive, meaning that higher income is taxed at higher rates.
Therefore, Peter’s federal tax before credits is:
0.15×(48535#0)+0.205×(68251#48535)=11293.69
* Step 3: Subtract the federal tax credits from Peter’s federal tax before credits. A tax credit is an amount that reduces the tax payable by a taxpayer. There are two types of federal tax credits: non-refundable and refundable. Non-refundable tax credits can only reduce the tax payable to zero, but not below zero.
Refundable tax credits can reduce the tax payable below zero, resulting in a refund to the taxpayer. In this question, we assume that Peter only has two non-refundable tax credits: the basic personal amount and the dividend tax credit. The basic personal amount is a fixed amount that every taxpayer can claim to reduce their taxable income. According tothis site, the basic personal amount for 2021 is $13,808.
The dividend tax credit is a percentage of the grossed-up dividend income that reflects the corporate tax paid by the issuer and avoids double taxation. According tothis site, the federal dividend tax credit rate for eligible dividends in 2021 is 15.0198%.Therefore, Peter’s federal tax credits are:
0.15×13808+0.150198×(500×2)×0.1502=2100
* Step 4: Subtract Peter’s federal tax credits from his federal tax before credits to get his net federal tax liability. This is the amount of federal income tax that Peter has to pay or has overpaid for the year.
Therefore, Peter’s net federal tax liability is:
11293.69#2100=9193.69
Hence, option B is correct. References:Federal Income Tax Rates for Canada – TurboTax Canada Tips, Capital Gains Tax in Canada | Wealthsimple, Dividend Tax Credit | TurboTax Canada Tips, Basic Personal Amount (BPA)

NEW QUESTION 198
Which of the following statements about your mutual fund registration is CORRECT?

You can sell mutual funds anywhere in Canada as long as you are registered with one of the provincial or territorial securities commissions.

Your online application must be reviewed and approved by your mutual fund dealer before you can begin to sell mutual funds.

You must renew your registration through the online NRD system every two years.

You must inform the regulatory authorities of any material or significant changes to your personal circumstances.

NEW QUESTION 199
Which of the following statements is TRUE about inflation?

Inflation results in a redistribution of income from borrowers to lenders.

Generally inflation will benefit those who are living on investment income.

Purchasing power rises as inflation rises.

An increase in the inflation rate could mean investors have less money to invest.

NEW QUESTION 200
The Optima Equity Fund has a beta of 1.4. What is the most accurate way to describe the Optima Equity Fund’ s relationship to the market as a whole?

If the market goes up by 5%, the Optima Fund should go up by 7%

If the market goes up by 10%, the Optima Fund should go up by 11.4%

If the market goes down by 5%, the Optima Fund should go down by 5.7%

If the market goes down by 10%, the Optima Fund should go up by 11.4%

NEW QUESTION 201
Why is it important to include ethical decision-making as a Standard of Conduct?

Ensures conformity with externally established standards.

Enables CIRO to regulate the actions and behaviours of registered individuals.

Provides flexibility so registrants can use their own judgement.

Allows the security industry to operate with the trust and confidence of the public.

NEW QUESTION 202
Which of the following statement about Exchange Traded Funds (ETFs) is TRUE?

Usually the market price of an ETF is the net asset value per unit (NAVPU) of the Fund on that day.

Investors may sell their ETFs in the stock market or redeem them through the Fund at the NAVPU of the day.

ETFs have lower MERs compared to mutual funds.

All ETFs are actively managed.

NEW QUESTION 203
Evan owns retractable preferred shares of Ingram Corp. Which statement CORRECTLY describes a key feature of Evan’s shares?

Gives Evan the option to convert the Ingram Corp preferred shares into a fixed number of common shares at a predetermined price within a specified period.

Offers Evan the opportunity to receive additional dividends if Ingram Corp’s profit exceeds a stated level.

Entitles Evan to sell the shares back to Ingram Corp at a pre-determined price and time in the future.

Allows Ingram Corp to buy back the preferred shares at a pre-determined price within a defined period.

NEW QUESTION 204
What do Guaranteed Income Supplement (GIS) and Allowance for the Survivor have in common?

ability to defer benefits

benefits start at the age of 65

eligibility depends on income level

benefit amounts depend on individual contribution

NEW QUESTION 205
Which of the following best describes implied needs of your clients?

They are needs reflected by statements made by clients regarding problems and dissatisfactions.

They are statements made by you showing readiness to solve a client’s problem.

They are statements made by clients expressing the desire for lower commissions.

They are statements of wants and needs made by clients.

NEW QUESTION 206
10 years ago, Felipe opened a registered retirement savings plan (RRSP) account and purchased a mutual fund. The mutual fund purchased included a 7-year deferred sales charge (DSC). At the time of making his investment, him and his Dealing Representative agreed that he had a 25-year growth objective. Since Felipe knew that he was not planning to use his investment until he retired, he was not concerned about the DSC. Although the rate of return did vary from year-to-year, he never noticed his mutual fund having a drop in value. This gave Felipe more confidence in the investment. As a result, he has never made any changes to his investment.
What category of Know Your Client (KYC) information has been given?

Financial circumstances

Investment experience

Risk profile

Personal circumstances

NEW QUESTION 207
Danny is a Dealing Representative for Everbright Investments. He met with his client Adele, who has
$1,000,000 to invest. During their meeting Danny determines that Adele has a high-risk profile. In addition, he learns that she has an excellent understanding of equities and how volatile they can be. Danny is considering recommending growth funds specifically, and making a recommendation from the following investment options:

Based on the information provided, which mutual fund should Danny recommend?

ABC Global Equity Fund.

DEF European Equity Fund.

LMN Asia Pacific Equity Fund.

Invest equally in all 3 funds.

NEW QUESTION 208
Maxine is a portfolio manager who 15 years ago, purchased 100 shares of Never2Tacky, a social media corporation for Aspirations Global Technology Fund. She purchased the stock when it was trading at $10.
Last year, the peak market price was $120. Presently, it is trading at $99. News agencies are now reporting that additional regulations regarding social media companies are about to be agreed upon by G7 countries.
Maxine is concerned the market value of Never2Tacky is going to drop. She buys a put option with an exercise price of $95 with an expiry of 9 months.
What type of strategy is Maxine using?

Speculating

Modern portfolio theory

Passively managing

Hedging

NEW QUESTION 209
When must client complaints be acknowledged in writing?

When the client has made a written complaint in any format

When complaints are made repeatedly by the same client with respect to the same representative

Any time the client has made a verbal or written complaint

When the client has made a written complaint in letter format

NEW QUESTION 210
What bias results in investors valuing an asset that they own over an asset that another individual owns?

Representativeness

Endowment

Risk aversion

Status Quo

NEW QUESTION 211
Which of the following transactions takes place in the secondary market?

Issue of new debt and equity securities

Sale of mutual funds

Issue of federal Treasury bills

Resale of previously issued securities

NEW QUESTION 212
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?

She will be able to continue contributing to her RRIF and be subject to the same annual limits as her RRSP.

When she converts her RRSP to a RRIF, she will incur a tax liability.

She will be subject to annual maximum withdrawal limits.

She does not have to withdraw the minimum amount this year.

NEW QUESTION 213
The performance of ABC Mutual Fund ranks 54 out of 100 funds in its peer group. What is its quartile ranking?

4th quartile

1st quartile

2nd quartile

3rd quartile

NEW QUESTION 214
What trait or characteristic is normally associated with a person who would be designated as a Trusted Contact Person (TCP)?

Normally has a financial interest in the client’s account or assets.

Often involved with providing care for the client who requires personal assistance.

Has the authority to make financial decisions on behalf of the client.

Can simplify difficult financial concepts for the client.

NEW QUESTION 215
If the Consumer Price Index (CPI) was 140.6 last year and 146.9 this year, what was the inflation rate over the year?

4.12%

5.20%

4.48%

6.04%

NEW QUESTION 216
Malik has been saving money for retirement but he is worried about the impact inflation may have on the value of his savings. He wants to purchase a bond that will give him a steady stream of income that is greater than the inflation rate. He has found a bond issued by a major airline with a market price of $9,200, a par value of $10,000, and a coupon rate of 6.75%.What is the current yield of this bond?

7.34%

6.75%

6.25%

6.21%

NEW QUESTION 217
Bernadette has a high-paying job and is in the top tax bracket. She recently received a payment of $5 million upon the settlement of her uncle’s estate. Bernadette would like to invest her inheritance in financial products that would not only grow her money but is also income tax friendly.
Which of the following would provide the most favourable tax treatment?

Dividends received from a large foreign corporation.

Coupon payments from Government of Canada bonds.

Capital gains from a large Canadian corporation.

Eligible dividends from a publicly-listed Canadian corporation