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1.
The rate at which prices increase over time is called inflation.
Choose wisely. There is only one correct answer.
True. Inflation is the process of rising prices.
2.
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.
3.
A utility stock would be unsuitable for an investor seeking current income.
Choose wisely. There is only one correct answer.
False. Income stocks include preferred stock, utility stock, and large-cap, blue chip stocks. These stocks regularly pay income dividends.
4.
The plan you set with a financial advisor will be regularly reviewed.
Choose wisely. There is only one correct answer.
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.
5.
Which of the following is not a long-term growth investment?
Choose wisely. There is only one correct answer.
Certificate of deposit. A certificate of deposit is not a long-term growth investment. It is an income investment.
6.
Investment advisors suggest increasing the number of fixed-income securities in your portfolio as you age because _______.
Choose wisely. There is only one correct answer.
Advanced age makes it difficult to regain losses from more volatile investments such as stocks. Having fixed-income securities in your portfolio can reduce this problem.