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 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.

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.

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.

A zero coupon bond:

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

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.)

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 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.

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.

 
   
   
Horizon Financial Services Inc.
1001 Hingham Street, Ste 100 Rockland, MA 02370
Phone: 781-792-1900 Fax: 781-792-0900
www.horizonfs.net rickg@cfnmail.com

Securities and Advisory Services offered through Commonwealth Financial Network, Member FINRA/SIPC, a Registered Investment Adviser.

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