Basics Beginner: Investment Goals

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1.
A utility stock would be unsuitable for an investor seeking current income.
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False. Income stocks include preferred stock, utility stock, and large-cap, blue chip stocks. These stocks regularly pay income dividends.
2.
The portion of the future over which you will invest is your _______.
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Time horizon. Taking your time horizon into consideration will help you determine how to allocate your resources.
3.
The rate at which prices increase over time is called inflation.
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True. Inflation is the process of rising prices.
4.
Financial advisors can help you consolidate your debts.
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True. Debt-reduction is an important first step in managing your finances.
5.
Which of the following is not a long-term growth investment?
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Certificate of deposit. A certificate of deposit is not a long-term growth investment. It is an income investment.
6.
To get a clear picture of your current financial status, you can calculate your _______.
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Net worth. Your net worth will tell you where you are as you begin investing.