Tax-Free Withdrawals Can Be Made from an RRSP Under Which

question 31

Multiple Choice

Tax-free withdrawals can be made from an RRSP under which of the following circumstances?

• A)Each spouse can withdraw $40 000 tax-free for the purchase of a house.
• B)You can withdraw $10 000 under the Lifelong Learning Plan to educate your children.
• C)You can withdraw any amount necessary to pay off your mortgage if over 55 years of age.
• D)You can withdraw $10 000 for tuition fees or books for your spouse.

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Definitions:

Scarcity

A fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.

Shortage

A situation where the demand for a good or service exceeds its supply in the market, often leading to increased prices.

Initial Equilibrium

The initial state of balance where the supply and demand curves intersect, determining the market price and quantity before any external changes.

Equilibrium Price

The market price at which the quantity of goods demanded is equal to the quantity of goods supplied.