Home > Strategy > Intermediate
Strategy Intermediate: Investing for Income

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Mutual funds pay dividends when their holdings pay dividends.
Choose wisely. There is only one correct answer.
True. Mutual funds are made of individual holdings. Their dividends are possible only when their holdings pay dividends.
2.
By liquidating _______ in a mutual fund, you can receive income from it.
Choose wisely. There is only one correct answer.
Shares. Bonds and taxes cannot be liquidated in mutual funds.
3.
Income investments usually provide income on a steady basis.
Choose wisely. There is only one correct answer.
True. Although it is not always guaranteed, income is usually continuous.
4.
Which of the following is most likely to determine whether a stock is income-oriented?
Choose wisely. There is only one correct answer.
A past history of dividend payments. This is more likely than any of the other choices to be true of an income-oriented stock.
5.
As an investor, you can receive income from your investments in all but which of the following ways?
Choose wisely. There is only one correct answer.
Increase in the value of an investment. Strictly speaking, it is only when funds are sent to you that you receive income.