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.
     


Junk bonds:

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

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 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 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.

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.

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.

The number of stocks that make up the Dow Jones Industrial Average is:

5,000.
500.
30.
10.

A zero coupon bond:

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

 
   
   
Sorum Financial
212 N Broadway Lebanon, OH 45036
Phone: 513-932-8731 or 1-866-332-8731 Fax: 513-932-6341
nathan@sorumfinancial.com

 

 

 

 

*Securities offered through SagePoint Financial, Inc., member FINRA/SIPC. Investment advisory services offered through Sorum Financial Services, Inc., a registered investment advisor not affiliated with SagePoint Financial, Inc. 

Nathan Sorum is securities- licensed/registered to do business with U.S. residents in the states of: OH, IN, MI, MN, WA, IL, SC, NY, FL.  Insurance licenses are held in: OH, IN, WA, NY.  No offers may be made or accepted from any resident outside the specific state(s) referenced.
 
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