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.
     


For most Americans, taxes are due on:

January 1.
April 1.
April 15.
December 31.

Credit cards:

Are a cost effective way of financing investment purchases.
Have interest payments that are not tax deductible.
Typically have lower interest rates than home equity loans.
Often have 3 month grace periods on new purchases.

Since the mid-1920s inflation in the United States has averaged:

About 3 percent.
About 7 percent.
About 10 percent.
About 12 percent

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.

The P/E ratio:

Is the same for all firms in a given industry.
Does not change over time.
Is typically higher for firms whose earnings are expected to grow rapidly.
Is the same as the dividend yield.

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.

Junk bonds:

Are bonds issued by junk yards.
Are sometimes called "high yield bonds."
Are less risky than government bonds.
Are not actually bonds.

 
   
   
Strong Financial Network
1105 N. Main Street Lakeport, CA 95453
Phone: (707) 262-1880 Fax: (707) 262-1883
jennifer.strong@investmentcenters.com