Back by popular demand, it’s the New Year’s quiz from Investor Clinic.
Test your knowledge of ETFs, TFSAs and ACBs! Hold a virtual quiz night for some “fund-tastic” memories with friends and family. If this isn’t the most entertaining 15 minutes you have during the holidays, I can’t help you.
Good luck!
1As of Dec. 30, the three largest companies by market capitalization on the S&P/TSX Composite Index, in descending order, were:
a) Royal Bank, CN Railway, Shopify
b) Shopify, Royal Bank, TD Bank
c) Royal Bank, TD Bank, CN Railway
d) CN Railway, Royal Bank, Scotiabank
Answer: b) Shopify, Royal Bank, TD Bank
2According to Statistics Canada, the consumer price index jumped ____ per cent on a year-over-year basis in November.
a) 3.9 per cent
b) 4.7 per cent
c) 5.6 per cent
d) 7.1 per cent
Answer: b) 4.7 per cent
3Justin made the maximum annual deposit to his tax-free savings account every year from 2009 through 2021, for a total contribution of $75,500. However, because he put all of his money into cannabis stocks a few years ago, the value of his TFSA plunged to just $10,500 as of Dec. 23. If he withdrew half of the remaining value on Dec. 24 to buy Christmas presents, how much could he contribute to his TFSA on Jan. 1, 2022?
a) $76,250
b) $70,250
c) $11,250
d) $6,000
Answer: c) $11,250
4Celine holds an exchange-traded fund in her tax-free savings account and noticed that the ETF had a reinvested or “phantom” distribution in December. For tax purposes, she is required to:
a) Do nothing
b) Add the amount to her adjusted cost base
c) Report the amount as a capital gain
d) Subtract the amount from her ACB
Answer: a) Do nothing
5Which of the following Canadian companies have not been the target of a bearish report published by U.S. short seller Spruce Point Capital?
a) Shopify and Canopy Growth
b) Nuvei and Lightspeed Commerce
c) Canadian Tire and Dollarama
d) GFL Environmental and Ballard Power
Answer: a) Shopify and Canopy Growth
6Restaurant Brands International – owner of Tim Hortons, Popeyes Louisiana Kitchen and Burger King – agreed to acquire a fourth fast-food chain in 2021. Which one was it?
a) Hunt Brothers Pizza
b) Qdoba Mexican Eats
c) Sonic Drive-In
d) Firehouse Subs
Answer: d) Firehouse Subs
7Through Dec. 30, the worst-performing stock on the S&P/TSX Composite Index for 2021 was:
a) Bombardier
b) Canopy Growth
c) New Flyer Industries
d) Yamana Gold
Answer: b) Canopy Growth
8Shania bought 1,000 shares of Royal Bank of Canada in March, 2020, when the price had dropped to $78 in the early days of the pandemic. She later sold 300 shares in July, 2020, when the price had rebounded to $95. Finally, she sold her remaining 700 shares at $130 in December, 2021. Ignoring commissions, the capital gain on the sale of 700 shares would result in ______ being included in Shania’s 2021 taxable income:
a) $18,200
b) $20,750
c) $36,400
d) $41,500
Answer: a) $18,200
9Which of the following real estate investment trusts has not cut its distribution since the pandemic started?
a) RioCan REIT
b) Crombie REIT
c) H&R REIT
d) First Capital REIT
Answer: b) Crombie REIT
10Which of the following companies did not raise its dividend in 2021?
a) A&W Revenue Royalties Income Fund
b) Suncor Energy
c) Rogers Communications
d) Keg Royalties Income Fund
Answer: c) Rogers Communications
11For the five years ended Dec. 30, the Big Six banks with the highest and lowest annualized total returns – of 16.5 per cent and 8.9 per cent, respectively – were:
a) TD Bank; National Bank
b) Royal Bank; CIBC
c) TD Bank; Bank of Montreal
d) National Bank; Scotiabank
Answer: d) National Bank; Scotiabank
12For Canadian investors, there is no withholding tax on dividends from individual U.S. stocks provided the shares are held in a:
a) RRSP, RRIF or LIRA
b) TFSA, RRSP or RESP
c) RESP, TFSA or RRSP
d) RESP, TFSA or LIRA
Answer: a) RRSP, RRIF or LIRA
13Which statement is false?
a) Old Age Security benefits are taxable
b) Published ETF returns are before expenses
c) Return of capital reduces an investment’s cost base
d) Reinvested distributions increase the cost base
Answer: b) Published ETF returns are before expenses
14Drake buys 100 shares of U.S.-based Cannabis Crypto-Cloud Solutions Inc. for US$75 each when the Canadian dollar is trading at 70 US cents. He later sells the shares for US$85 each when the loonie is at 83 US cents. His total capital gain, or loss, in Canadian dollars, is:
a) Capital gain of $1,204.82
b) Capital gain of $1,428.57
c) Capital loss of $714.29
d) Capital loss of $473.33
Answer: d) Capital loss of $473.33
15For the 2021 taxation year, Old Age Security pension benefits start getting clawed back at income of _____ and are completely eliminated when income reaches _____.
a) $69,179; $99,109
b) $73,514; $105,976
c) $79,845; $129,757
d) $98,177; $141,393
Answer: c) $79,845; $129,757
How did you do?
Answer all of the questions to see your result
Well done!
Not bad!
Nice try, but you missed some.
John Heinzl