Chapter 8 IFIC: Understanding RRSPs, TFSAs, and Other Registered Accounts

Chapter 8 IFIC: Understanding RRSPs,
TFSAs, and Other Registered Accounts

T-Bills, Bonds, Equities - correct answer ✔✔Rank the three basic securities on risk factor from
least to greatest



The return adjusted for inflation - correct answer ✔✔Real rate of return



Return not adjusted for inflation - correct answer ✔✔Nominal return



the ability to buy goods and services - correct answer ✔✔Purchasing power



1. Interest income - T Bills, bonds, money market mutual funds

2. Dividend Income - Common and Preferred Shares.

3. Capital Gains - Selling an investment for more than the price paid. - correct answer ✔✔What
are the three types of investment returns? What are some examples of each?



Interest Income - taxed at the same rate as your income from employment. - correct answer
✔✔What is the highest taxed investment return?



The return if the transaction period is longer or shorter than a year. - correct answer
✔✔Holding Period Return



The calculation of the return on two investments over many holding periods. - correct answer
✔✔Definition: Average or mean