Strategy Intermediate:
Investing for Income
Test your knowledge
Choose wisely. There is only one correct answer to each question.
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1.
You can receive dividends directly from your investment.
Choose wisely. There is only one correct answer.
True
False
True. Your investment vehicle will send them directly to you after it receives them.
2.
All but which of the following are income-oriented investments?
Choose wisely. There is only one correct answer.
Income mutual funds
CDs
Bonds
None of the above
None of the above. All of these investment choices are income-oriented.
3.
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.
Withdrawal plans
Periodic liquidation of shares
Increase in the value of an investment
Dividends
Increase in the value of an investment. Strictly speaking, it is only when funds are sent to you that you receive income.
4.
Which of the following is most likely to determine whether a stock is income-oriented?
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High profits
A past history of dividend payments
Growth potential
The size of its dividends
A past history of dividend payments. This is more likely than any of the other choices to be true of an income-oriented stock.
5.
Income investments usually provide income on a steady basis.
Choose wisely. There is only one correct answer.
True
False
True. Although it is not always guaranteed, income is usually continuous.
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DONE