Basics Beginner: Investment Goals

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1.
All of the following investments would be suitable for current income except _______.
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Aggressive-growth mutual funds. These would be unsuitable for an income investor because growth investors sacrifice current income and usually wait long periods while their investments grow in value.
2.
A financial advisor focuses only on one specific area of your finances.
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False. A financial advisor focuses on your overall financial health.
3.
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.
4.
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.
5.
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.
6.
The rate at which prices increase over time is called inflation.
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True. Inflation is the process of rising prices.