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.
     


A zero coupon bond:

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

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).

The strength of economic growth in the United States is reported as changes in the:

The Gross Domestic Product (GDP).
The National Association of Securities Dealers Index (NASDAQ).
The Dow Jones Industrial Average (DJIA).
The Wealth Index of Investments and Inflation (WIII).

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

5,000.
500.
30.
10.

Buying on margin::

Precludes the advantage of using leverage.
Is not affected by limits on borrowing established by ERISA.
Minimizes losses if the price of a security declines.
Is possible by borrowing from a broker.

The term generally used to describe the market in which prices fully reflect all available information is:

The greater fool hypothesis.
Random walk hypothesis.
The size-effect hypothesis.
Efficient markets hypothesis.

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.

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.

 
   
   
Royal Alliance
7513 Overton Avenue Raytown, MO 64138-1722
Phone: (816) 358-8188
(888) 677-9766
Fax: (816) 358-2202
www.hurstfinancial.net ron@hurstfinancial.net

"Ronald C. Hurst, CFP, MBA" is a Registered Representative of and offers securities products & services through Royal Alliance Associates, Inc. Member FINRA/SIPC, a registered broker-dealer. In Arkansas, Indiana, Kansas, Missouri, Oregon and Texas. No offers may be made or accepted from any resident outside the specific states referenced.

Advisory services offered through Royal Alliance Associates, Inc., a Registered Investment Advisor.

IMPORTANT CONSUMER INFORMATION:

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For information concerning the licensing status or disciplinary history of broker-dealer, investment adviser, BD agent, or IA rep, a consumer should contact his or her state securities law administrator.