Question

1- Which of the following statements is not true about retirement savings?

a.No tax is paid now on money paid into sheltered savings plans.

b.Funds in sheltered savings plans grow before tax.

c.No tax is ever paid on money paid into sheltered savings plans.

d.Unsheltered savings are bought with after-tax dollars.

2.Which of the following statements about the steady-state financing rate is not true?

a.It means CPP rates will not go above 4.95%.

b.Up to half of the CPP fund is being actively managed.

c.It has been an unfunded pension plan.

d.In a few years, the CPP fund will be fully funded like other pension plans.

3. Which of the following statements about RPP is not true?

a.Most DCPP are in the private sector.

b.There are many DBPP in the private sector.

c.Employers who provide DBPP may have to make large contributions to ensure the plan is fully funded due to a drop in the stock market.

d.The limit on benefits received is the same for DCPP and DBPP.

4. Which of the following statement(s) are correct?

a.Defined benefit plans can generate surpluses.

b.Defined contribution plans cannot generate surpluses.

c.Deferred profit sharing plans are a type of defined contribution plan.

d.All of the above are true

Answer 1

1-d.Unsheltered savings are bought with after-tax dollars.

2- a.It means CPP rates will not go above 4.95%.

3-d.The limit on benefits received is the same for DCPP and DBPP.

4-d.All of the above are true