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.
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.
2.
Regular purchases of stock with money taken out of an existing account are an example of an _______.
Choose wisely. There is only one correct answer.
Automatic investment plan. In this case, money is going toward buying investments.
3.
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.
4.
If you are averse to risk and you want to save money for a purchase three months from now, why would a savings account be a good choice to put your money into?
Choose wisely. There is only one correct answer.
It has a low risk of loss. This may make it an ideal choice.
5.
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.