Basics Beginner: Investment Goals

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1.
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.
2.
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.
3.
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.
4.
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.
5.
Why is your age important when you create an investment portfolio?
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All of the above. All of these make your age a factor for successful 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.