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1.
Automatic withdrawal amounts from one account to another are made on a predetermined basis.
True. Withdrawals are set up for the same day each month or week.
2.
An advantage of using an automatic investment plan to fund a retirement account is that it can benefit from compounded earnings as it grows.
True. Most retirement plans benefit from compounded growth of earnings.
3.
An automatic savings plan withdraws money from an existing savings or checking account on a periodic basis and deposits it into another account.
True. The period is usually monthly or weekly.
4.
If you are averse to risk and you want to save money for a purchase three months from now, why would a savings account be a good choice to put your money into?
It has a low risk of loss. This may make it an ideal choice.
5.
Automatic savings and investment plans are often used to fund _______.
All of the above. These are the most common uses for automatic plans.