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1.
One component of investing wisely is to set specific goals.
Choose wisely. There is only one correct answer.
True. Setting goals allows you to direct your investing carefully.
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.
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.
4.
Investors have historically been punished for taking market risk.
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False. On the contrary, investors historically have been rewarded for taking market risk.
5.
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.
6.
A financial advisor focuses only on one specific area of your finances.
Choose wisely. There is only one correct answer.
False. A financial advisor focuses on your overall financial health.