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.

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.

Technical analysis is a technique based on factors that are inherent to the market and include:

Number of shares sold on a specific day.
Number of consecutive days of price increases of a stock.
Changes in the direction of movement of a market index.
All of the above

Stocks whose returns are tied closely to the overall national economy are typically called:

Blue Chip stocks.
Defensive stocks.
Speculative stocks.
Cyclical stocks.

Dividends are taxed:

At the investor’s marginal income tax rate.
At a maximum rate of 15%.
Only when the stock is sold.
Dividends are never taxed.

Variable life insurance:

Offers tax deferral.
May provide higher return potential and greater risk than a whole life policy.
Allows you to invest a portion of the premium in various subaccounts.
All of the above.

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.

A 35-year old individual with 4 young children and a spouse who doesn’t work should probably consider purchasing which of the following types of insurance:

Long-term care insurance.
Disability insurance.
Life insurance.
(b) and (c).

 
   
   
Creative Asset Solutions
Michigan Office
18645 Canal Rd., Suite 2
Clinton Township, MI 48038
Phone: 586-228-1282
Fax: 859-818-0409

Kentucky Office
3940 Olympic Blvd., Suite 400
Erlanger, KY 41018
Phone: 859-372-6727
Fax: 859-818-0409

kevin@creativeassetsolutions.com