A Fully Updated 2024 CIFC Exam Dumps - PDF Questions and Testing Engine
Easy Success IFSE Institute CIFC Exam in First Try
NEW QUESTION # 128
Quintin has been a Dealing Representative for Global Maximum Financial for 5 years. Today, he opened an account for his new client, Reginald. In addition to opening a new account, Reginald agreed to accept Quintin's investment recommendation and placed a purchase order to buy units of the Global Maximum Value Equity fund.
Quintin informed his Branch Manager Lupita about this new account on the same day the purchase order was received. Lupita told Quintin that she would complete her review of the New Client Application Form (NCAF) by no later than tomorrow.
Which statement regarding this new account opening is CORRECT?
- A. Quintin and Lupita are both following proper procedure regarding new account openings and purchase orders.
- B. Quintin cannot accept purchase orders from a client until Lupita completes her review of the NCAF.
- C. Lupita has two business days from the date of opening the new account to approve the NCAF completed by Quintin.
- D. Unless Quintin is presently under probation, he does not need Lupita's approval regarding the NCAF.
Answer: B
Explanation:
Explanation
According to the MFDA Rules, a Dealing Representative must not accept any purchase orders from a client until the Branch Manager or other designated person has reviewed and approved the New Client Application Form (NCAF) for the client. This is to ensure that the Dealing Representative has obtained and verified all the necessary information about the client, such as identity, investment objectives, risk tolerance, financial situation, and suitability of investments. The review and approval of the NCAF must be completed before any trades are executed for the client, unless there are exceptional circumstances that justify a delay. In this case, Quintin should have waited for Lupita's approval of the NCAF before placing the purchase order for Reginald.
References: 1: MFDA Rules as at December 31, 2021 - MFDA 2 (Rule 2.2.4)
NEW QUESTION # 129
What is the national self-regulatory organization (SRO) for investment dealers?
- A. The Mutual Fund Dealers Association of Canada
- B. The Investment Industry Regulatory Organization of Canada
- C. The Canadian Securities Administrators
- D. The National Securities Commission
Answer: B
NEW QUESTION # 130
Your employer has a contributory group RRSP under which he matches employee contributions, up to a maximum of 5% of salary.
Which of the following statements about a group registered retirement savings plan (RRSP) is CORRECT?
- A. It is more costly and time consuming to administer than traditional pension plans.
- B. You need to wait until you file your taxes to receive your contribution tax deduction.
- C. If you leave your employer, your group RRSP stays with the employer.
- D. The employer chooses the plan provider.
Answer: D
Explanation:
Explanation
A group RRSP is a retirement savings plan sponsored by an employer that allows employees to contribute through regular payroll deductions and benefit from tax advantages and possible employer matching. The employer is responsible for choosing the plan provider, which is the financial institution that administers the group RRSP and offers a range of investment options for the employees to choose from. The employer may also negotiate lower fees and better services with the plan provider than what individual RRSPs can offer.
Therefore, statement D is correct.
The other statements are incorrect for the following reasons:
* Statement A: A group RRSP is less costly and time consuming to administer than traditional pension plans, as it does not require actuarial valuations, funding requirements, or regulatory filings.
* Statement B: If you leave your employer, your group RRSP does not stay with the employer. You can transfer your group RRSP to an individual RRSP or another registered plan without tax consequences, as long as there are no locked-in provisions.
* Statement C: You do not need to wait until you file your taxes to receive your contribution tax
* deduction. Your contributions are deducted from your gross income before tax is calculated, so you receive an immediate tax benefit on your paycheque.
References: Canadian Investment Funds Course, Unit 9, Section 9.1
NEW QUESTION # 131
Which statement regarding the underwriting process and over-the-counter (OTC) markets is CORRECT?
- A. The disclosure standards for stock exchanges are not as stringent as those imposed by the OTC market.
- B. During the underwriting process investment bankers raise investment capital from investors on behalf of corporations and governments issuing securities.
- C. Many new stock issues that are underwritten by securities firms are first listed on a stock exchange before they are sold over-the-counter.
- D. Corporations must have their shares listed both on an exchange and the OTC market during the underwriting process.
Answer: B
NEW QUESTION # 132
Which of the following statements about registered education savings plans (RESPs) is CORRECT?
- A. There is a yearly contribution limit per beneficiary.
- B. Contributed funds grow tax-free within the plan.
- C. RESPs must be collapsed by the end of the 31st year of its starting date
- D. Contributions to RESPs are tax deductible.
Answer: B
NEW QUESTION # 133
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?
- A. When she converts her RRSP to a RRIF, she will incur a tax liability.
- B. She will be able to continue contributing to her RRIF and be subject to the same annual limits as her RRSP.
- C. She will be subject to annual maximum withdrawal limits.
- D. She does not have to withdraw the minimum amount this year.
Answer: D
NEW QUESTION # 134
What does a normal yield curve look like?
- A. slopes upward to the left
- B. slopes upward to the right
- C. slopes down to the right
- D. is flat and has no slope
Answer: B
NEW QUESTION # 135
What type of mutual fund can invest in specified derivatives and forward contracts for grains, meats, metals, energy products, and coffee?
- A. specialty fund
- B. global equity fund
- C. commodity pool
- D. labour-sponsored investment fund
Answer: C
Explanation:
Explanation
A commodity pool is a type of mutual fund that can invest in specified derivatives and forward contracts for commodities, such as grains, meats, metals, energy products, and coffee. A commodity pool allows investors to gain exposure to the commodity markets without having to buy or sell the physical commodities themselves. A commodity pool may also use leverage and hedging strategies to enhance returns and reduce risks. Therefore, B is the correct answer. References: Commodity Pool: Definition and How It Works - Investopedia, Canadian Investment Funds Course (CIFC) | IFSE Institute
NEW QUESTION # 136
Which statement about a net capital loss incurred by a mutual fund trust is CORRECT?
- A. A net capital loss is permitted to be carried forward by the mutual fund for up to 3 years.
- B. Anet capital loss is permitted to be carried forward indefinitely by the mutual fund.
- C. Anet capital loss is permitted to be carried back indefinitely by the mutual fund.
- D. Anet capital loss is passed on to the unit holders by the mutual fund in the year it occurs.
Answer: B
Explanation:
Explanation
A net capital loss is the excess of allowable capital losses over taxable capital gains in a taxation year. A mutual fund trust is a type of investment fund that is structured as a trust and distributes its income and capital gains to its unit holders. A mutual fund trust cannot pass on its net capital losses to its unit holders, as it can only distribute its net income and net realized capital gains. However, a mutual fund trust can carry forward its net capital losses indefinitely and use them to offset its taxable capital gains in future years. This reduces the amount of tax payable by the mutual fund trust and increases the amount of distributions available to its unit holders. A mutual fund trust cannot carry back its net capital losses to previous years, as this option is only available to corporations12. References:
Canadian Investment Funds Course (CIFC) Study Guide, Chapter 7: Taxation, Section 7.3: Taxation of Mutual Funds, page 7-103 Capital Losses and Deductions - Canada.ca1 Mutual Fund Trusts - Canada.ca2
NEW QUESTION # 137
Which of the following statements is TRUE about inflation?
- A. Generally inflation will benefit those who are living on investment income.
- B. Inflation results in a redistribution of income from borrowers to lenders.
- C. Purchasing power rises as inflation rises.
- D. An increase in the inflation rate could mean investors have less money to invest.
Answer: D
Explanation:
Explanation
Inflation is the general increase in the prices of goods and services over time. Inflation reduces the purchasing power of money, meaning that a dollar can buy less than it used to. Inflation also erodes the real value of investment income, such as interest, dividends, and capital gains. Therefore, an increase in the inflation rate could mean that investors have less money to invest, as their income and savings lose value.
References = Canadian Investment Funds Course, Unit 5: Types of Investments, Lesson 1: Economic Factors and Financial Markets, Section 5.1.2: Inflation1; CIFC prepkit, Chapter 5: Types of Investments, Question
5.1.2 2
NEW QUESTION # 138
You have been researching Canadian equity mutual funds for a new client. You come across the following information.
What can you conclude from this information?
- A. Fontaine Equity Fund has a lower risk level since its Sharpe Ratio is lower.
- B. Fontaine Equity Fund's higher MER contributes to its lower 5-year annualized return.
- C. Fontaine Equity Fund is a better fund because it has a higher quartile ranking.
- D. Chamberlain Equity Fund has lower volatility since its 5-year annualized return is higher.
Answer: B
Explanation:
Explanation
The management expense ratio (MER) is the percentage of a fund's assets that is paid to the fund manager for operating and managing the fund. A higher MER means that more of the fund's returns are eaten up by fees, leaving less for the investors. Therefore, Fontaine Equity Fund's higher MER of 2.99% contributes to its lower
5-year annualized return of 11.25%, compared to Chamberlain Equity Fund's MER of 2.57% and 5-year annualized return of 13.42%. Therefore, D is the correct answer. References: Canadian Investment Funds Course (CIFC) | IFSE Institute, Management Expense Ratio (MER): Definition and How It Works - Investopedia
NEW QUESTION # 139
You have been researching Canadian equity mutual funds for a new client. You come across the following information.
What can you conclude from this information?
- A. Fontaine Equity Fund has a lower risk level since its Sharpe Ratio is lower.
- B. Fontaine Equity Fund's higher MER contributes to its lower 5-year annualized return.
- C. Fontaine Equity Fund is a better fund because it has a higher quartile ranking.
- D. Chamberlain Equity Fund has lower volatility since its 5-year annualized return is higher.
Answer: B
NEW QUESTION # 140
Iliana owns 1,000 participating preferred shares in the First Canadian Bank. Which of the following features are characteristic of her investment?
- A. Iliana is able to vote at the annual general meeting and elect members of the board of directors.
- B. Iliana can convert her preferred shares to common shares at a fixed price and within a specified time period.
- C. Iliana has the right to purchase more preferred shares in the company before common shareholders.
- D. Iliana has a right to share in the bank's net profits over and above the specified dividend rate.
Answer: A
NEW QUESTION # 141
Your client Gerard is 30 years old and plans to retire at age 65. He has a mutual fund portfolio of $40,000 in which he invests $1,500 monthly. Gerard's objective is to use these funds to meet the 20% down payment requirement to buy a house for $650,000.
What is Gerard's investment time horizon not considering market fluctuations?
- A. 15 years
- B. 35 years
- C. 25 years
- D. 5 years
Answer: D
Explanation:
Explanation
Gerard's investment time horizon is the length of time he plans to hold his investment until he needs to use the money for his specific goal. In this case, Gerard's goal is to use his mutual fund portfolio to meet the 20% down payment requirement to buy a house for $650,000. Therefore, his investment time horizon is determined by how long it will take him to accumulate enough money in his portfolio to cover the down payment amount.
Assuming that Gerard does not withdraw any money from his portfolio and that his portfolio earns a constant annual rate of return of 6%, we can use the following formula to calculate how long it will take him to reach his goal:
FV=PV*(1+r)n+PMT*r(1+r)n1
where:
* FV is the future value of the portfolio
* PV is the present value of the portfolio
* r is the annual interest rate
* n is the number of years
* PMT is the monthly payment
We can rearrange the formula to solve for n:
n=log(1+r)logPV+PMT*r1FVPMT*r1
Plugging in the given values, we get:
n=log(1+0.06)log40,000+1,500*0.061130,0001,500*0.061
n=4.98
Therefore, Gerard's investment time horizon is approximately 5 years, not considering market fluctuations.
This means that he will need to invest his money in a way that matches his risk tolerance and expected return for this time period.
References:
* Canadian Investment Funds Course (CIFC) Study Guide, Chapter 4: Mutual Funds, Section 4.6: Asset Allocation and Diversification, page 4-271
* Future Value of an Annuity Definition - Investopedia2
NEW QUESTION # 142
You have been researching Canadian equity mutual funds for a new client. You come across the following information.
What can you conclude from this information?
- A. Fontaine Equity Fund has a lower risk level since its Sharpe Ratio is lower.
- B. Fontaine Equity Fund's higher MER contributes to its lower 5-year annualized return.
- C. Fontaine Equity Fund is a better fund because it has a higher quartile ranking.
- D. Chamberlain Equity Fund has lower volatility since its 5-year annualized return is higher.
Answer: B
Explanation:
Explanation
The management expense ratio (MER) is the percentage of a fund's assets that is paid to the fund manager for operating and managing the fund. A higher MER means that more of the fund's returns are eaten up by fees, leaving less for the investors. Therefore, Fontaine Equity Fund's higher MER of 2.99% contributes to its lower
5-year annualized return of 11.25%, compared to Chamberlain Equity Fund's MER of 2.57% and 5-year annualized return of 13.42%. Therefore, D is the correct answer. References: Canadian Investment Funds Course (CIFC) | IFSE Institute, Management Expense Ratio (MER): Definition and How It Works - Investopedia
NEW QUESTION # 143
David had $10,000 in his investment account with Dynamic Investments, a mutual funds dealer. On June 28, David wants to buy 500 units in ABC Canadian Dividend Fund that has a Net Asset Value Per Unit (NAVPU) of $14.10. His friend Robert suggests that he may get a better price if he used the strategy of dollar-cost averaging. David then instructs his Dealing Representative to place a purchase order for 100 units on the first of every month starting July 1st for the next 5 months.
The orders are executed at the following NAVPUs.
July 01, $14.00
Aug. 01, $14.50
Sep. 01, $15.00
Oct. 01, $14.25
Nov. 01, $16.50
Did David get a better purchase price following the dollar-cost averaging strategy compared to making a lump-sum purchase of 500 shares on Jun 28, 20xx?
- A. David got his 500 units at a higher price than the lump sum price he would have paid
- B. David got his 500 units at a lower price than the lump sum price he would have paid.
- C. David got his 500 units at the same price as the lump sum price he would have paid.
- D. David realizes that Dollar cost averaging is the best strategy for getting lower prices.
Answer: A
Explanation:
Explanation
Dollar-cost averaging is a strategy that involves investing equal amounts of money at regular intervals, regardless of the price of the security. By using dollar-cost averaging, investors may lower their average cost per share and reduce the impact of volatility on their portfolios. However, this strategy does not guarantee a better purchase price than making a lump-sum purchase. In this case, David got his 500 units at a higher price than the lump sum price he would have paid. His average cost per unit was $14.65, while the lump sum price was $14.10. Therefore, D is the correct answer. References: What Is Dollar-Cost Averaging?, What Is Dollar Cost Averaging?, Dollar-Cost Averaging: Definition and Examples
NEW QUESTION # 144
Which of the following best describes implied needs of your clients?
- A. They are statements made by clients expressing the desire for lower commissions.
- B. They are needs reflected by statements made by clients regarding problems and dissatisfactions.
- C. They are statements of wants and needs made by clients.
- D. They are statements made by you showing readiness to solve a client's problem.
Answer: B
Explanation:
Explanation
Implied needs of your clients are needs reflected by statements made by clients regarding problems and dissatisfactions1. For example, a client may say "I'm worried about outliving my savings" or "I don't understand how this investment works". These statements imply that the client has a need for retirement planning or financial education, respectively. Implied needs are different from explicit needs, which are statements of wants and needs made by clients1. For example, a client may say "I want to save for my child's education" or "I need a low-risk investment". These statements express the client's goals and preferences clearly. Statements made by you showing readiness to solve a client's problem are not implied needs, but rather responses to implied needs1. For example, you may say "I can help you create a retirement plan that suits your lifestyle" or "I can explain how this investment works and what are the benefits and risks". Statements made by clients expressing the desire for lower commissions are not implied needs, but rather objections or concerns that may arise during the sales process2. For example, a client may say "Your fees are too high" or "I can get a better deal elsewhere". These statements may indicate that the client is not convinced of the value of your service or product, or that they are trying to negotiate a lower price.
References: Unit 2: Know Your Client, Unit 10: Sales Process
NEW QUESTION # 145
Pierre buys a call option on a stock. What is the implication of this transaction?
- A. Pierre is obligated to buy the stock if the option is exercised.
- B. Pierre has the right to buy the stock if he exercises the option.
- C. Pierre has the right to sell the stock if he exercises the option.
- D. Pierre is obligated to sell the stock if the option is exercised.
Answer: B
Explanation:
Explanation
According to the What Is a Call Option and How to Use It With Example - Investopedia, a call option is a contract that gives the buyer the right, but not the obligation, to buy an underlying stock at a specified price (the strike price) within a specified time period (the expiration date). The seller of a call option is obligated to sell the stock if the buyer exercises the option. Pierre buys a call option on a stock, which means he has the right to buy the stock if he exercises the option. He can also choose not to exercise the option or sell it before expiration.
NEW QUESTION # 146
Dakota is a Dealing Representative with Harvest Wealth Inc., a mutual fund dealer. Dakota starts a marketing campaign to contact prospective new clients and increase sales with existing clients. Which of the following CORRECTLY describes activities that Dakota can engage in under her marketing campaign?
- A. Dakota can send promotional emails to clients who have opted in to receive commercial electronic messages (CEMs).
- B. Dakota can make telemarketing calls to clients who have opted in to receive commercial electronic messages (CEMs).
- C. Dakota can send promotional emails to clients who have opted into Harvest Wealth's Do Not Call List
- D. Dakota can make telemarketing calls to clients who are listed on the National Do Not Call List
Answer: A
Explanation:
Explanation
Dakota can send promotional emails to clients who have opted in to receive commercial electronic messages (CEMs). A CEM is any electronic message that encourages participation in a commercial activity, such as an email, a text message, or a social media message. Under Canada's anti-spam legislation (CASL), Dakota must obtain consent from the recipients before sending CEMs, either explicitly (e.g., by asking them to sign up for a newsletter) or implicitly (e.g., by having an existing business relationship with them). Dakota must also identify himself and his dealer, provide contact information, and include an unsubscribe mechanism in every CEM. The other statements are incorrect. Dakota cannot make telemarketing calls to clients who are listed on the National Do Not Call List (DNCL). The DNCL is a list of telephone numbers of consumers who do not want to receive unsolicited telemarketing calls. Under the Telecommunications Act, Dakota must register with the National DNCL operator, subscribe to the National DNCL, and avoid calling any number on the list, unless he has express consent from the consumer or an exemption applies. Dakota cannot send promotional emails to clients who have opted into Harvest Wealth's Do Not Call List. A Do Not Call List is a list of telephone numbers of consumers who do not want to receive telemarketing calls from a specific organization.
Under the Telecommunications Act, Dakota must maintain an internal Do Not Call List for his dealer and respect the requests of consumers who ask not to be called by his dealer. However, this does not mean that he can send promotional emails to those consumers, as that would violate CASL. Dakota cannot make telemarketing calls to clients who have opted in to receive commercial electronic messages (CEMs). Opting in to receive CEMs does not imply consent to receive telemarketing calls, as they are different forms of communication governed by different laws . Dakota must obtain separate consent from the clients before making telemarketing calls to them, either explicitly or implicitly. References: [Canada's anti-spam legislation], [National Do Not Call List]
NEW QUESTION # 147
Fabiola is an optometrist and an incorporated professional. She has fallen behind schedule regarding saving for retirement. She is considering opening an Individual Pension Plan (IPP).
What provision might encourage her to use an IPP?
- A. Withdrawals will be taxable to the business, not to Fabiola, when she starts receiving her pension income.
- B. Contributions to her IPP can be greater than what applies to contributions for registered retirement savings plans.
- C. Her pension benefit is not pre-determined because it is based on the returns on investments which she chooses.
- D. When Fabiola files her personal tax return, she will be able to claim contributions as an eligible deduction.
Answer: B
Explanation:
Explanation
An IPP is a registered, defined-benefit pension plan that provides a fixed retirement benefit to the person designated in the plan. It is similar to an RRSP, but with some differences in contribution limits, deductions, and tax benefits. One of the main advantages of an IPP is that it allows higher contribution limits than an RRSP, especially for older and higher-income individuals. The contributions are based on the actuarial calculations of the pension benefit, and are tax-deductible for the sponsoring corporation. The higher contribution limits can help Fabiola catch up on her retirement savings and reduce her taxable income123 References = Canadian Investment Funds Course (CIFC) - Module 3: Registered Plans - Section 3.3:
Individual Pension Plan (IPP) and web search results from search_web(query="individual pension plan")123
https://www.ifse.ca/wp-content/uploads/2021/08/CIFC-Module-3.pdf
NEW QUESTION # 148
Greg, one of your clients, has been advised by a friend to invest in open-end mutual funds. He is not sure about the differences between open and closed-end funds.
What would you tell Greg about open-end funds?
- A. The number of units is not fixed, and varies with investor demand and redemption orders.
- B. Initial shares in the mutual fund are allotted through an initial public offering (IPO)
- C. Investors holding open-end funds can buy and sell their mutual funds anytime the stock market is open.
- D. Units are bought and sold amongst the unitholders.
Answer: A
Explanation:
Explanation
According to the Closed-End Funds vs. Open-End Funds: What's the Difference? - Investopedia, open-end funds are mutual funds that can issue an unlimited number of shares to investors. The number of units is not fixed, and varies with investor demand and redemption orders. Investors buy and sell open-end funds directly from the fund company at the net asset value (NAV) of the fund, which is calculated at the end of each trading day. Open-end funds are not traded on an exchange or in the secondary market.
NEW QUESTION # 149
Jasmine purchases a 1-year, $10,000 face value strip bond for $9,600. At maturity, when Jasmine receives
$10,000, which of the following statements is CORRECT?
- A. Jasmine realizes a taxable dividend of $400.
- B. Jasmine realizes interest income of $400.
- C. Jasmine realizes a capital dividend of S400.
- D. Jasmine realizes a taxable capital gain of $400.
Answer: B
Explanation:
Explanation
Jasmine realizes interest income of $400 because she bought a strip bond, which is a bond that has its principal and coupon payments separated and sold individually. Jasmine bought the principal-stripped bond, also known as a zero-coupon bond, which pays no interest until maturity. The difference between the purchase price and the face value at maturity is considered interest income and is taxable in the year it is received.
References: Strip Bonds: Definition, How They Work, Returns, and Example
NEW QUESTION # 150
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?
- A. ABC Global Equity Fund.
- B. LMN Asia Pacific Equity Fund.
- C. Invest equally in all 3 funds.
- D. DEF European Equity Fund.
Answer: C
Explanation:
Explanation
Adele has a high-risk profile and an excellent understanding of equities. Therefore, it would be appropriate for Danny to recommend growth funds. However, since Adele has $1,000,000 to invest, it would be prudent to diversify her investments and invest equally in all 3 funds. This way, she can benefit from the exposure to different regions and sectors, and reduce the impact of market fluctuations on her portfolio. Based on the table, all 3 funds have the same 5-year annualized returns net of MER, which is 15%. However, they have different MERs and Sharpe ratios. The MER is the fee charged by the fund manager for managing the fund, and the Sharpe ratio is a measure of risk-adjusted return. A lower MER means a lower cost for the investor, and a higher Sharpe ratio means a higher return per unit of risk. Therefore, investing equally in all 3 funds would allow Adele to achieve a balanced trade-off between cost and performance. References:
* Canadian Investment Funds Course (CIFC) Study Guide, Chapter 4: Mutual Funds, Section 4.2: Types of Mutual Funds, page 4-6
* Canadian Investment Funds Course (CIFC) Study Guide, Chapter 5: Fixed-Income Securities, Section
5.5: Risk-Return Trade-Offs, page 5-14
* Sharpe Ratio Definition - Investopedia
NEW QUESTION # 151
Jonathan is a Dealing Representative who has just finished an appointment with his new client, Shirley.
Jonathan has concluded that Shirley has a low-risk profile but wants to establish additional savings of
$500,000. During their discussion, Shirley emphasizes she wants investments that are also tax efficient.
Jonathan learned that currently Shirley has no registered retirement savings plan (RRSP) and tax-free savings account (TFSA) contribution room due to using those opportunities by investmenting elsewhere.
What variable is a PRIMARY consideration for Jonathan when making an investment recommendation?
- A. Shirley's risk profile.
- B. Investment objective
- C. Expected time horizon.
- D. The tax consequences.
Answer: A
NEW QUESTION # 152
Pacari is a Dealing Representative with Cavalry Investments, a mutual fund dealer. Pacari's client, Darsha, is a long-time customer and an elderly widow. Darsha depended on her husband, for financial decisions before he passed. Pacari has also noticed that Darsha's capacity seems to be declining over the years. Luckily, with Pacari's help, Darsha has been managing her finances well. However, Darsha's daughter has been getting involved recently and has even tried to enter trades without Darsha's authorization. Pacari is particularly concerned about the last transaction for Darsha's account: a very large redemption. Pacari fears that Darsha has become a victim of financial exploitation and he raises his concerns with his dealer Cavalry. Which of the following statements about how Cavalry may proceed is CORRECT?
- A. Cavalry can place a temporary hold on Darsha's account to temporarily disallow the redemption.
- B. Cavalry must place a temporary hold on Darsha's account to disallow all transactions for the account.
- C. Cavalry must proceed with the redemption because temporary and permanent holds are not permitted.
- D. Cavalry can place a permanent hold on Darsha's account and disallow all future transactions.
Answer: A
NEW QUESTION # 153
......
CIFC Study Material, Preparation Guide and PDF Download: https://prep4sure.examtorrent.com/CIFC-exam-papers.html
