Strategy Intermediate:
Investing for Income
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1.
The stocks of dividend-paying companies are popular among investors who want _______.
Choose wisely. There is only one correct answer.
Low taxes
Capital appreciation
Income
Income. Neither low taxes nor capital appreciation are typical features of income stocks.
2.
You can receive dividends directly from your investment.
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True
False
True. Your investment vehicle will send them directly to you after it receives them.
3.
Mutual funds that invest in bonds are income-oriented.
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True
False
True. Bonds are income-oriented; they are designed to produce periodic dividend payments.
4.
All but which of the following are income-oriented investments?
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Income mutual funds
CDs
Bonds
None of the above
None of the above. All of these investment choices are income-oriented.
5.
What does the income objective seek?
Choose wisely. There is only one correct answer.
Income for retirement
Risk aversion
Income for the present
Future growth of the investment
Income for the present. Risk aversion is common among income investors, but their chief goal is the income.
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DONE