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.
     


A benchmark asset, commonly considered by investors to be risk-free:

Treasury Bill (T-Bill).
Share of preferred stock.
A Eurobond
A junk bond.

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.

The financial pyramid implies that:

An investment near the top of the pyramid has a higher potential return, but also carries higher risk.
Egyptian pharoahs were astute investors.
Eating nutritious meals from the "food pyramid" will make you a better investor.
"Pyramid" or "Ponzi" schemes are good investments.

Buying on margin::

Precludes the advantage of using leverage.
Is not affected by limits on borrowing established by ERISA.
Minimizes losses if the price of a security declines.
Is possible by borrowing from a broker.

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).

A zero coupon bond:

Is sold at a discount to face value.
Is worthless.
Matures immediately.
Always has a call feature.

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.

If you call your broker to purchase a "round lot" you are:

Buying a mutual fund of 100 different stocks.
Authorizing him/her to decide how many shares to buy.
Negotiating commissions on future purchases and sales.
Purchasing 100 shares of a specific stock.

 
   
   
Valenti & Associates
28411 Northwestern Hwy, Suite 1300 Southfield, MI 48034
Phone: 800-459-9079 Fax: 248-827-7378
nvalenti@jhnetwork.com