Strategy Intermediate: Investing for Income

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.
Companies that make big profits pay big dividends.
Choose wisely. There is only one correct answer.
False. Some of them reinvest their profits to finance future growth.
2.
As an investor, you can receive income from your investments in all but which of the following ways?
Choose wisely. There is only one correct answer.
Increase in the value of an investment. Strictly speaking, it is only when funds are sent to you that you receive income.
3.
What does the income objective seek?
Choose wisely. There is only one correct answer.
Income for the present. Risk aversion is common among income investors, but their chief goal is the income.
4.
Income investments usually provide income on a steady basis.
Choose wisely. There is only one correct answer.
True. Although it is not always guaranteed, income is usually continuous.
5.
Mutual funds that invest in bonds are income-oriented.
Choose wisely. There is only one correct answer.
True. Bonds are income-oriented; they are designed to produce periodic dividend payments.