Strategy Intermediate: Investing for Income

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1.
By liquidating _______ in a mutual fund, you can receive income from it.
Choose wisely. There is only one correct answer.
Shares. Bonds and taxes cannot be liquidated in mutual funds.
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.
Mutual funds pay dividends when their holdings pay dividends.
Choose wisely. There is only one correct answer.
True. Mutual funds are made of individual holdings. Their dividends are possible only when their holdings pay dividends.
4.
The stocks of dividend-paying companies are popular among investors who want _______.
Choose wisely. There is only one correct answer.
Income. Neither low taxes nor capital appreciation are typical features of income stocks.
5.
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.