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1.
Which of the following is not generally a goal of long-term investing?
Current income. Receiving current income is not generally a goal of long-term investing. Long-term investors understand that they will have to put off income for months or years.
2.
You should take inflation into account when buying long-term investments because _______.
Inflation erodes purchasing power over time. This is why you should consider the investment returns you can expect to get.
3.
Dividends are _______.
Shared company profits. Dividends are investors cuts of company profits.
4.
Tax-deferred investment accounts usually come with early withdrawal penalties.
True. Early withdrawal penalties are meant to keep money in investments for long periods.
5.
Growth stocks come from companies whose earnings are expected to _______.
Grow faster than the market average. The stock of companies with high earnings are valued highly in the marketplace, and thus grow greatly in value.