1. The taxable impact of the annual growth on an investment is most likely to affect which type of account?

a. A RRIF

b. A non-registered account

c. An RRSP

d. A TFSA

2. Implicit costs are costs stated in the fund prosectus.

True

False

3. When a mutual fund earns dividends (from a shares that it owns), what tax impactwill this have?

	a.	The dividend will flow through the mutual fund to the investors, and they will receive a tax slip which needs to be included in their annual income.
	b.	The dividend tax credit offsets the dividend income earned by the fund, so there is no impact for either the investor or the mutual fund company.
	c.	There will be no tax impact for the investors. The mutual fund earns the dividend in it's name, and files its corporate/trust taxes accordingly, thus paying taxes on the dividend.
	d.	This will trigger a capital gain, which will then need to be included in both the tax filings of the investors and the mutual fund company.