Tips: For main topic questions, focus on the first and repeated ideas.

Why the other options are wrong:

• A mortgage application meeting: They never talk about a house or borrowing money. No mortgage words appear in the call.
• Opening a chequing account: They do not mention daily banking or chequing accounts. The focus stays on education savings.
• Applying for a student loan: They do not talk about applying for a loan. The child is only five years old.

Correct Answer: Because contribution limits apply across all RESPs for one child.

Why this is correct: The advisor asks about other family members' RESPs. She explains all RESPs for one child share the same limits. This explains why the question matters.

Tips: When asked why, listen for the explanation right after.

Why the other options are wrong:

• Because grandparents must report their income.: No one talks about grandparents' income. Income reporting is not mentioned.
• Because only one RESP is allowed per family.: The advisor does not say only one RESP is allowed. She says limits are shared.
• Because older RESPs are automatically closed.: She does not say older RESPs close automatically. That idea is never stated.

Correct Answer: Facing penalties for contributing too much.

Why this is correct: At the start, the caller says he worries he may have overcontributed. He also says he does not want penalties. This shows his main worry.

Tips: Early worries often show the main concern.

Why the other options are wrong:

• Losing access to the RESP account.: He does not mention losing access to the account. The account stays open.
• Paying bank service fees.: Bank service fees are never discussed. No costs like that are mentioned.
• Choosing the wrong investment funds.: They do not talk about investment choices. The focus is on limits.

Correct Answer: Only a lifetime limit applies.

Why this is correct: The advisor clearly says there is no annual limit. She then states there is a lifetime limit of fifty thousand dollars. This directly answers the question.

Tips: Trust direct rule statements from the advisor.

Why the other options are wrong:

• There is a strict yearly maximum.: She clearly says there is no annual contribution limit. So this is wrong.
• Limits depend on the child’s age.: She does not connect limits to the child's age. Age is not used for limits.
• Limits change every province.: Provinces are never mentioned. Limits are not provincial here.

Correct Answer: Because the annual grant maximum is capped.

Why this is correct: The advisor says the basic CESG usually matches twenty percent up to five hundred dollars per year. With unused grant room from past years, it can be up to one thousand dollars, but the grant is capped each year.

Tips: Match numbers to reasons in the question.

Why the other options are wrong:

• Because grants are paid only at withdrawal.: Grants are discussed now, not only at withdrawal. This is incorrect.
• Because the account is too new.: The account age is never mentioned. That is not the reason.
• Because TD Bank limits grant claims.: No bank name or bank rule is mentioned. This is not about TD Bank.

Correct Answer: It can be used in future years.

Why this is correct: The advisor explains that unused grant room carries forward and can be used with new contributions in future years. It is unused grant room that carries forward, not excess contributions already made.

Tips: Future meaning often answers what happens later.

Why the other options are wrong:

• It disappears after one year.: She does not say it disappears. She says it can be used later.
• It must be transferred to another child.: There is no talk about transferring to another child.
• It requires a special application.: No special application is mentioned at all.

Correct Answer: He will pause contributions until next year.

Why this is correct: The caller says he will stop for the rest of this year. He plans to review in January. This means he will pause contributions until next year.

Tips: Final answers often come near the end.

Why the other options are wrong:

• He will close the RESP.: He never says he will close the RESP. The account stays open.
• He will increase contributions next month.: He does not plan to increase contributions next month.
• He will transfer funds to another bank.: He does not mention changing banks.

Correct Answer: It helps balance grants and cash flow.

Why this is correct: The advisor agrees after discussing cash flow and high daycare costs. She says reducing contributions could balance things. This explains why the plan makes sense.

Tips: Agreement often follows a clear reason.

Why the other options are wrong:

• It maximises TD Bank profits.: Bank profits are never mentioned. This is not the goal.
• It avoids reporting requirements.: They do not talk about reporting rules here.
• It guarantees higher returns.: Higher returns are not discussed at all.