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.
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.
3.
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.
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.
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.