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Strategy Intermediate:
Investing for Income
Test your knowledge
Choose wisely. There is only one correct answer to each question.
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1.
Income investments usually provide income on a steady basis.
Choose wisely. There is only one correct answer.
True
False
True. Although it is not always guaranteed, income is usually continuous.
2.
By liquidating _______ in a mutual fund, you can receive income from it.
Choose wisely. There is only one correct answer.
Shares
Taxes
Bonds
Shares. Bonds and taxes cannot be liquidated in mutual funds.
3.
Which of the following is most likely to determine whether a stock is income-oriented?
Choose wisely. There is only one correct answer.
High profits
A past history of dividend payments
Growth potential
The size of its dividends
A past history of dividend payments. This is more likely than any of the other choices to be true of an income-oriented stock.
4.
The stocks of dividend-paying companies are popular among investors who want _______.
Choose wisely. There is only one correct answer.
Low taxes
Capital appreciation
Income
Income. Neither low taxes nor capital appreciation are typical features of income stocks.
5.
All but which of the following are income-oriented investments?
Choose wisely. There is only one correct answer.
Income mutual funds
CDs
Bonds
None of the above
None of the above. All of these investment choices are income-oriented.
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DONE