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.
     


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.

If a mutual fund manager increases his/her cash position, it can be said:

The manager is anticipating a bear market.
The manager is anticipating a bull market.
The manager is trying to reduce the fund’s taxable gains.
The manager is aggressive.

Of the following, the safest type of investment is:

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

A stock certificate:

Is always issued to the individual investor.
Represents a primary claim on the firm’s assets.
Represents ownership in a corporation.
Is handwritten.

The total stock market (S&P 500) return during the 1990s was:

Predicted by most Wall Street analysts at the beginning of the decade.
Lower than the historical average
The highest of any decade in the 20th century.
Approximately the same as the total return during the 1970s.

Disability income insurance:

Can cover part of your lost income while you are disabled.
Pays medical expenses associated with a disability.
Should only be purchased by star athletes.
Is primarily for the unemployed.

The January Effect:

Is the influence on the market of the mutual funds’ performance reported in December.
Is another name for the Superbowl anomaly believed to affect stock prices.
Is the result of several studies regarding inexplicably higher returns during January.
Supports the predictabilityof cyclical prices determined by chaos theory.
(Portfolio Construction, Management and Protection by Robert A. Strong, p. 182.)

A limit order:

Is used to protect a profit if it is a limit order to buy.
Is used to execute a sell at a specific price or lower if possible.
Is an order to buy or sell at a specific price or better and can be good till canceled.
Is an order to be executed at the best price available and is not known until after confirmation is received.

 
   
   
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