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← Series 7: Opens & Maintains Customer Accounts
Series 7 practice questioneasyCustomer Profiles — Investment Objectives

A customer states that her primary goal is to protect her principal while generating modest income. Which investment objective best describes her needs?

  1. ASpeculation
  2. BGrowth
  3. CCapital preservation and income✓ Correct answer
  4. DAggressive growth
Explanation

Why C — Capital preservation and income

Capital preservation and income is the objective for investors who prioritize protecting their principal while earning a steady, modest return. This is typically associated with conservative investments such as Treasury bonds, money market funds, and high-grade corporate bonds.

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