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.
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.
2.
Automatic withdrawals from an existing savings account can be used to fund _______.
Choose wisely. There is only one correct answer.
All of the above. Automatic investing can build up your investments for you.
3.
Automatic savings and investment plans are often used to fund _______.
Choose wisely. There is only one correct answer.
All of the above. These are the most common uses for automatic plans.
4.
Using an automatic investment plan to fund a retirement account is only for the young.
Choose wisely. There is only one correct answer.
False. Even later in life, you can still build up a sizable amount of money.
5.
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.