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.
     


The highest denomination of U.S. currency is:

The $20 bill
The $100 bill
The $1,000 bill
The $100,000 bill

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

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

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.

Investments in CDs:

Are riskier than investments in stocks.
Are inferior to investments in 8-tracks and vinyl records.
Are always tax deferred.
Are insured by the FDIC, but have generally underperformed stock investments over the long run.

Mortgage payments:

Can be completely deducted from income for tax purposes.
Vary from month to month on a fixed rate loan.
Represent high principal payments early in the term of the loan.
Are typically tax deductible to the extent that they represent payment of interest.

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.

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.

Of the following, the safest type of investment is:

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

 
   
   
Financial Life Planners
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Phoenix, AZ 85044
Phone: 480-346-4073 or 888-459-8682
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