Financial IQ Test  
What is your financial IQ? Take this 8-question quiz to find out! If you don’t like the results, try again. You will be asked a different set of questions.
     


Of the following, the safest type of investment is:

Under the mattress.
An FDIC-insured CD.
An international growth mutual fund.
An Internet stock.

The net asset value (NAV) of a bond fund:

Cannot be determined.
Changes as interest rates change.
Is determined by the average coupon rates of the bonds in the fund.
Will not change as bonds in the fund are bought or sold.

The strength of economic growth in the United States is reported as changes in the:

The Gross Domestic Product (GDP).
The National Association of Securities Dealers Index (NASDAQ).
The Dow Jones Industrial Average (DJIA).
The Wealth Index of Investments and Inflation (WIII).

Beta is commonly used as a relative measure of risk. It measures:

Standard deviation of a stock’s price.
The expected total returns of a diversified portfolio.
The unsystematic risk component of an investment.
The risk of a security or portfolio relative to the overall market.

The term generally used to describe the market in which prices fully reflect all available information is:

The greater fool hypothesis.
Random walk hypothesis.
The size-effect hypothesis.
Efficient markets hypothesis.

For tax purposes, a capital gain is considered long term if the investment was held more than:

1 day.
1 month.
1 year.
10 years.

Gold may be a good investment if:

Inflation is expected to increase.
You like the color.
World peace comes to pass.
Foreign governments sell their gold reserves.

Determining total return typically utilizes the:

Inflation-adjusted annual performance of all mutual-funds.
Annual capital gain plus dividend payout of a stock or fund.
Math skills learned in college-level calculus courses.
Dividend yield on the Dow Jones Industrial Average.

 
   
   
Successful Financial Strategies, Inc.
521 E. Lincoln Rd. Kokomo, IN 46902
Phone: 765-453-3355 Fax: 765-453-5549
wesnow@sfsplan.com

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