Under the new law, Chapter 39 (formerly Bill C-68), there are two levels of Firearms Licenses (actually 3, if you include minor's permits). A "Possession Only" license was available up to the end of the year 2000, but not any more.
Long Guns: Acquisition & Possession
If you have no interest in restricted firearms (handguns) but you still wish to be able to acquire long guns, you will need this level of PAL (Possession and Acquisition License).
You are required to pass the "Non-Restricted Canadian Firearms Safety Exam" The fee for the license is $60 for 5 years.
Handguns: Acquisition & Possession
You must pass both the "Restricted Firearms Canadian Firearms Safety Exam" AND the "Non-Restricted Canadian Firearms Safety Exam". If you have previously completed the old Canadian Firearms Safety Exam (the full one -- long guns and handguns), you will be grandfathered, which means that most existing FAC holders will automatically get this License. The fee for this version of the PAL is $80 for five years.