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Strategy Intermediate: Investing for Income

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1.
Income investments usually provide income on a steady basis.
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True. Although it is not always guaranteed, income is usually continuous.
2.
All but which of the following are income-oriented investments?
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None of the above. All of these investment choices are income-oriented.
3.
By liquidating _______ in a mutual fund, you can receive income from it.
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Shares. Bonds and taxes cannot be liquidated in mutual funds.
4.
Companies that make big profits pay big dividends.
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False. Some of them reinvest their profits to finance future growth.
5.
What does the income objective seek?
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Income for the present. Risk aversion is common among income investors, but their chief goal is the income.