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.
What does the income objective seek?
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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.
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.
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.
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DONE