Jake Invested $800 in an RRSP

question 68

Multiple Choice

Jake invested $800 in an RRSP. If he has a 15 percent marginal tax rate and the contribution is tax deductible, Jake will

• A)pay $120 more in taxes.
• B)pay $120 less in taxes.
• C)receive an $800 tax credit.
• D)have $800 more in taxable income.

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Definitions:

Bond Employees

A bond for employees, often called fidelity bond, is an insurance policy that protects the employer against financial loss due to the fraudulent activities of an employee or group of employees.

Internal Control System

A set of policies and procedures put in place by a company to safeguard assets, ensure financial data accuracy, and promote operational efficiency.

Risk of Loss

The potential for an investment or venture to result in financial loss.

Human Error

Mistakes made by individuals, often leading to accidents or failures in tasks or operations.