Certified Financial Planner (CFP) Practice Exam · Question
Scenario 22: What is the primary function of a Registered Education Savings Plan (RESP) in Canada?
RESPs are specifically designed to help families save for a child's post-secondary education, with investment income growing tax-free and government grants supp
Start free practice for Certified Financial Planner (CFP) Practice Exam
444 questions · no signup required · 40 free questions per day
Question: Scenario 22: What is the primary function of a Registered Education Savings Plan (RESP) in Canada?
Answer options:
- To save for retirement on a tax-deferred basis.
- To pay for a child's extracurricular activities. ✅ To provide a tax-sheltered way to save for post-secondary education.
- To allow tax-free withdrawals for any purpose.
Correct answer: To provide a tax-sheltered way to save for post-secondary education.
Explanation: RESPs are specifically designed to help families save for a child's post-secondary education, with investment income growing tax-free and government grants supplementing contributions. The correct answer is "To provide a tax-sheltered way to save for post-secondary education.". This capacity-fill scenario 22 reinforces the same competency for the cfp bank and follows the certified explanation standard.
Start free practice for Certified Financial Planner (CFP) Practice Exam
444 questions · no signup required · 40 free questions per day
More about Certified Financial Planner (CFP) Practice Exam
More for Certified Financial Planner (CFP) Practice Exam candidates
Ready to practice?
Free, no signup required. Build a wrong-question list as you go.
Start Free Certified Financial Planner (CFP) Practice Exam Practice →Related courses
Other Canadian certifications candidates often prepare for alongside this one.