Choose wisely. There is only one correct answer to each question.
0%
Keep studying!
Review your answers below to learn more.
1.
Savings accounts can be ideal candidates for automatic investing plans _______.
For either the short term or the long term. They are ideal for the risk averse, over either the short term or the long term.
2.
Investments high in risk can be ideal for retirement plans funded by automatic investment plans because _______.
The ups and downs in the market can smooth out over the course of years, leading to growth. Though there are no guarantees, historically the market's ups and down have done this.
3.
Automated transfers of money between two accounts require that those accounts be from two different institutions.
False. You can set up an automated transfer between two accounts at the same institution.
4.
Automatic savings and investment plans are often used to fund _______.
All of the above. These are the most common uses for automatic plans.
5.
With an automatic savings or investment plan, funds are typically transferred to the target account on the same day each week or month.
True. That regularity is important for the plan to work.