Free CSI IFC Exam Questions

Become CSI Certified with updated IFC exam questions and correct answers

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Total 490 Questions | Updated On: Oct 27, 2026

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Question 1

One of your clients, Rakesh, had a portfolio composed of 60% ABC Equity Fund and 40% ABC Bond Fund.Since equities were performing much better than fixed income, he had increased his holdings in ABC EquityFund to 70% and had reduced his holding in ABC Bond Fund to 30% of his portfolio.After benefitting the growth in his ABC Equity Fund for over 2 years, Rakesh is uncomfortable with thisheavy exposure to equity funds and decides to rebalance his portfolio back to 60% of ABC Equity Fund and40% of ABC Bond Fund.He instructs you to switch 10% of the portfolio from the ABC Equity Fund to the ABC Bond Fund.Which of the following statements is CORRECT?

A : Rakesh will not be subjected to a switch fee if it is outlined in the prospectus.

B : Rakesh will not be subjected to a switch fee if his equity fund is a no-load fund.

C : Rakesh will not be subjected to a switch fee if his original units were purchased with a sales charge.

D : Rakesh will not be subjected to a switch fee if his equity fund is a low-load fund.

Answer: A

Question 2

Your client has very limited investment knowledge and is confused about what is meant by "marginal taxrate". What do you tell him?

A : It is the tax rate applied to the next dollar earned.

B : It is the tax rate used in calculating taxable capital gains.

C : It is an amount resulting from dividing your total tax liability by your taxable income for the year.

D : It is the number used to gross-up Canadian dividend income.

Answer: A

Question 3

What risk type is prevalent regardless of the level of portfolio diversification or hedging?

A : Market

B : Default

C : Unique

D : Inflation

Answer: A

Question 4

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

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

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?

A : Mortgage fund

B : Preferred dividend fund

C : Equity growth fund

D : Bond fund

Answer: B

Page: 1 / 98

Total 490 Questions | Updated On: Oct 27, 2026

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