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Questions and Answers
What is the main difference between GIC and a savings account?
What is the main difference between GIC and a savings account?
- GICs have a fixed term and money is guaranteed, while savings accounts are designed for saving money that you don't plan to spend right away (correct)
- GICs are tax free, while savings accounts have a lower interest rate
- GICs can be used for education purposes, while savings accounts are low risk and low reward investments
- GICs have a government match for a certain amount of money, while savings accounts are for emergency funds
What is the key feature of a TFSA (Tax Free Savings Account)?
What is the key feature of a TFSA (Tax Free Savings Account)?
- It is low risk but also low reward type investment
- It has a fixed term and guaranteed money
- It offers a government match for a certain amount of money saved
- It is tax free when you withdraw money, and can be used for education purposes (correct)
What distinguishes RESP from other investment options?
What distinguishes RESP from other investment options?
- It has a fixed term with guaranteed money
- It is a type of bank account for saving money without immediate spending plans
- It offers low risk and low reward type investment
- It is designed for a child's post-secondary education and the government matches a certain amount of money (correct)
Why is it important to have an emergency fund as mentioned in the text?
Why is it important to have an emergency fund as mentioned in the text?
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What happens if you withdraw money from an RRSP before the age of 65?
What happens if you withdraw money from an RRSP before the age of 65?
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What is the main advantage of contributing to an RRSP?
What is the main advantage of contributing to an RRSP?
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What is a characteristic of mutual funds?
What is a characteristic of mutual funds?
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What is the main feature of owning stocks in a company?
What is the main feature of owning stocks in a company?
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What distinguishes bonds from stocks in terms of risk?
What distinguishes bonds from stocks in terms of risk?
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What is a consequence of not withdrawing money from an RRSP after the age of 65?
What is a consequence of not withdrawing money from an RRSP after the age of 65?
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