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Strategy Intermediate: Investing for Income

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1.
Companies that make big profits pay big dividends.
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False. Some of them reinvest their profits to finance future growth.
2.
Mutual funds that invest in bonds are income-oriented.
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True. Bonds are income-oriented; they are designed to produce periodic dividend payments.
3.
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.
4.
Income investments usually provide income on a steady basis.
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True. Although it is not always guaranteed, income is usually continuous.
5.
As an investor, you can receive income from your investments in all but which of the following ways?
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Increase in the value of an investment. Strictly speaking, it is only when funds are sent to you that you receive income.