Question

12 a good way to invest in a mutual fund is to automatically deduct a set amount from your checking account each month.

true
false

Explanation:

Analyze the investment strategy

Automatically deducting a set amount from a checking account each month to invest in a mutual fund is a classic implementation of dollar-cost averaging and the "pay yourself first" principle.

Evaluate the benefits

This method removes emotional decision-making, ensures consistent savings, and allows the investor to buy more shares when prices are low and fewer shares when prices are high, lowering the average cost per share over time.

Determine the truth value

Since this is widely considered an excellent, disciplined strategy for individual investors, the statement is true.

Answer:

• True (Correct answer)
• False