Test your investing knowledge

1. For calendar 2013, the annual contribution limit for the tax-free savings account (TFSA) rises to: *This question is required.

• $5,500 from $5,250
• $5,250 from $5,000
• $5,750 from $5,250
• $5,500 from $5,000

2. Assuming your spouse has TFSA contribution room available, you may: *This question is required.

• Contribute directly to his or her TFSA
• Contribute directly to his or her TFSA if you are the registered beneficiary
• Give him or her money to contribute to his or her TFSA
• Not fund his or her TFSA in any way

3. On Dec. 28, 2012, Bob sells 100 shares of Research In Motion for a capital loss of $4,500. The portion of the loss he can use to offset capital gains on his 2012 tax return is: *This question is required.

• Any amount up to and including $4,500
• 50% of $4,500, or $2,250
• $4,500
• 0

4. As of Jan. 1, 2013, the individual income thresholds at which Old Age Security benefits start getting clawed back, and at which they are eliminated entirely, are, respectively: *This question is required.

• $66,356 and $99,912
• $67,639 and $102,376
• $68,919 and $102,376
• $70,954 and $114,640

5. The individual income thresholds at which Canada Pension Plan benefits start getting clawed back, and at which they are eliminated entirely, are: *This question is required.

• Thresholds differ by province
• The CPP clawback depends on assets, not income
• There are no clawbacks on CPP
• The same as the OAS thresholds

6. If you own U.S. stocks, you can avoid U.S. withholding tax on the dividends by holding the shares in your: *This question is required.

• TFSA or RESP
• TFSA or RRSP
• RRSP, RRIF or LIRA
• TFSA, RESP, RRSP, RRIF or LIRA

7. Ignoring taxes, if you invest $200 a month starting one month after your 18th birthday and earn an annualized return of 8 per cent in the stock market, how much money will you have when you turn 65? (calculators permitted) *This question is required.

• $2,446,232
• $1,242,475
• $801,799
• $211,983

8. Rank the following common shares in descending order of dividend yield: Wal-Mart (WMT), Bank of Montreal (BMO), BCE (BCE), McDonald's (MCD) *This question is required.

• BCE, BMO, MCD, WMT
• MCD, BMO, BCE, WMT
• BMO, MCD, BCE, WMT
• BMO, BCE, WMT, MCD

9. Strip bonds, also known as zero-coupon bonds, refer to: *This question is required.

• Debt issued by strip malls
• A type of bond favoured by exotic dancers
• Bonds that make no interest payments and which are purchased at a discount to their maturity value
• Junk bonds issued by casinos on the Las Vegas strip

10. For the 2012 tax year, when reporting eligible dividend income on your tax return, the dividend amount is "grossed-up" by: *This question is required.

• 45 per cent
• 44 per cent
• 41 per cent
• 38 per cent

11. Jane has a $200,000 fixed-rate mortgage at 3.5 per cent and her marginal tax rate is 43 per cent. She has $50,000 in cash that she wants to use to either pay down her mortgage or buy a GIC in a non-registered account. What interest rate would the GIC have to pay in order to have the same after-tax return as paying down the mortgage? (calculators permitted) *This question is required.

• 3.5 per cent
• 5.33 per cent
• 6.14 per cent
• 7 per cent

12. As of Dec. 27, the yield on a 10-year Government of Canada bond was approximately: *This question is required.

• 1.8 per cent
• 1.7 per cent
• 1.6 per cent
• 2.1 per cent

13. As of Dec. 28, 2012, Doug has accumulated $24,000 in his tax-free savings account and has used all of his contribution room. On the first business day of 2013, he decides to withdraw the entire $24,000. How much money can he immediately re-contribute to his TFSA? *This question is required.

• $24,000
• $29,500
• $5,500
• $5,000

14. A capital loss can be carried back _______ and carried forward _______. *This question is required.

• up to five years; up to 10 years
• up to three years; indefinitely
• indefinitely; until age 65
• to the age of 18; until OAS benefits begin

15. The dividend tax credit applies to: *This question is required.

• Common dividends from Canadian and U.S. corporations
• Common, but not preferred, dividends from Canadian corporations
• Common and preferred dividends from Canadian corporations
• Common and preferred dividends from Canadian and British corporations