2.Which statement(s) is/are likely to be included in a letter of engagement between an advisor and a client?

1. Information required by the advisor.
2. How the advisor will be compensated.
3. Product recommendations for the client
4. All of the above
5. a & b

3.What type of personal borrowing product usually charges the highest interest rate?

1. Credit Card
2. Personal Line of Credit
3. Personal Loan

Home Equity Line of Credit Determine the individual who would have the smallest taxable income in the Canadian tax system.

Marg: $60,000 employment income, $5,000 interest income, $500 capital gains income

Martin: $55,500 employment income, $10,000 capital gains income

Raj: $50,500 employment income, $15,000 capital gains income, $1,000 interest income

Scott: $40,000 employment income, $10,000 capital gains income, $15,500 business income

4.Your new client meets with you to discuss a recent investment. She bought a five-year $10,000 guaranteed investment certificate (GIC) that pays an annual rate of 3% on a yearly basis. She bought the GIC in January 2020. She asks you what she will have to report on her 2020 income tax return?

1. $1,500 in income
2. $366.80 in dividends
3. $609.00 in capital gains
4. $300.00 in income