Income 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 that invest in bonds are income-oriented.
Choose wisely. There is only one correct answer.
True. Bonds are income-oriented; they are designed to produce periodic dividend payments.
2.
The stocks of dividend-paying companies are popular among investors who want _______.
Choose wisely. There is only one correct answer.
Income. Neither low taxes nor capital appreciation are typical features of income stocks.
3.
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.
4.
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.
5.
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.