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1.
The portion of the future over which you will invest is your _______.
Choose wisely. There is only one correct answer.
Time horizon. Taking your time horizon into consideration will help you determine how to allocate your resources.
2.
The plan you set with a financial advisor will be regularly reviewed.
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True. The plan will be reviewed to determine how well you are progressing toward meeting your goals and to determine whether they should be changed.
3.
If you wanted to accumulate assets for a down payment on a home in 10 years, which investment would be best suited for that?
Choose wisely. There is only one correct answer.
Growth mutual fund. This investment is liquid and provides better opportunity for appreciation than money market funds or CDs.
4.
It doesnt matter what you invest in as long as you invest.
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False. Different investments produce different returns; your investments need to match your investment goals.
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.
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.