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investor clinic

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
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:

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?

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