Income Intermediate:
Investing for Income
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1.
Income investments usually provide income on a steady basis.
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True
False
True. Although it is not always guaranteed, income is usually continuous.
2.
You can receive dividends directly from your investment.
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True
False
True. Your investment vehicle will send them directly to you after it receives them.
3.
All but which of the following are income-oriented investments?
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Income mutual funds
CDs
Bonds
None of the above
None of the above. All of these investment choices are income-oriented.
4.
The stocks of dividend-paying companies are popular among investors who want _______.
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Low taxes
Capital appreciation
Income
Income. Neither low taxes nor capital appreciation are typical features of income stocks.
5.
Mutual funds that invest in bonds are income-oriented.
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True
False
True. Bonds are income-oriented; they are designed to produce periodic dividend payments.
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DONE