Which Is a Key Difference Between RRSPs and TFSAs

question 25

Multiple Choice

Which is a key difference between RRSPs and TFSAs?

• A)TFSA withdrawals are taxed.
• B)RRSPs' contribution limit accumulates.
• C)TFSAs give tax deductions on contributions.
• D)RRSP withdrawals are taxed.

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Definitions:

Complements

Goods or services that are used together, where the demand for one increases the demand for the other.

ATMs

Automated Teller Machines, electronic banking outlets that allow customers to complete transactions without the need for a human clerk or bank teller.

Banking Industry

The sector of the economy made up of banks and financial institutions that provide services like accepting deposits, lending money, and other financial activities.

Substitutes

Goods or services that can be used in place of each other, having the ability to satisfy similar consumer needs or desires.