Finance and Investment Quiz

What is an annuity generally a contract between?

• An individual and a life insurance company

• An individual and a bank

• A company and a government

• A bank and a corporation

What happens to the NAVPS when dividends and capital gains are distributed?

• It increases by the amount of the distribution

• It remains the same

• It falls by the amount of the distribution

• It doubles

What is the tax effect on mutual funds redeemed while held in registered funds?

• They have immediate tax consequences

• They do not have any immediate tax consequences

• They are taxed at a higher rate

• They are exempt from all taxes

What are investors in non-registered accounts subject to when holding mutual funds?

• No taxes

• Tax on capital gains realized when the fund is sold

• Only income tax

• A flat tax rate

What is the primary focus of Section 6 in the learning material?

• Investment strategies

• Ethics, compliance, and mutual fund regulations

• Marketing techniques

• Financial analysis

Which chapter discusses mutual fund regulations and the scope of securities administrators in Canada?

• Chapter 16

• Chapter 17

• Chapter 18

• Chapter 19

What is one of the primary goals of the course mentioned in Chapter 1?

• Understanding investment risks

• Awareness of excellent client service

• Learning about stock markets

• Developing marketing strategies

What is essential for developing long-lasting client relationships according to the text?

• Financial incentives

• Ethical and regulatory responsibility

• Frequent communication

• Competitive pricing

What is the role, mandate, and scope of securities administrators in Canada?

• To regulate the stock market exclusively

• To oversee mutual fund dealers and ensure compliance with regulations

• To manage personal investment portfolios

• To provide financial advice to individual investors

What are the objectives of the Mutual Fund Dealers Association (MFDA) and the Autorité des marchés financiers (AMF)?

• To provide investment advice to clients

• To regulate and oversee mutual fund dealers

• To manage mutual fund investments

• To offer insurance products to investors