Strategy Beginner: Automatic Savings and Investment Plans

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Investments high in risk can be ideal for retirement plans funded by automatic investment plans because _______.
Choose wisely. There is only one correct answer.
The ups and downs in the market can smooth out over the course of years, leading to growth. Though there are no guarantees, historically the market's ups and down have done this.
2.
Which of the following can be sources of extra money with which to start funding an automatic investment plan?
Choose wisely. There is only one correct answer.
All of the above. All of these ideas can work.
3.
An automatic savings plan withdraws money from an existing savings or checking account on a periodic basis and deposits it into another account.
Choose wisely. There is only one correct answer.
True. The period is usually monthly or weekly.
4.
Some certificates of deposit accept additional deposits.
Choose wisely. There is only one correct answer.
True. Add-on certificates allow them, which makes them ideal for some peoples automatic investing plans.
5.
Automatic withdrawal amounts from one account to another are made on a predetermined basis.
Choose wisely. There is only one correct answer.
True. Withdrawals are set up for the same day each month or week.