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What's Your Investment Quotient (IQ)?

Test Yourself ...
The following is an ten question survey that measures your investment quotient. Good luck!

  1. Over the past 30 years, which of the following types of investments generally provided the highest rate of return?
    a.  Stocks
    b.  Bonds
    c.  Savings Accounts
    d.  Certificates of Deposit
    e.  Don't know
  2. Higher rates of return on investments mean greater risk.
    a.  True
    b.  False
    c.  Don't know
  3. When an investor diversifies his/her investments, does the risk of losing money increase or decrease?
    a.  Increase
    b.  Decrease
    c.  Don't know
  4. A "no-load" mutual fund involves no sales charges or other fees.
    a.  True
    b.  False
    c.  Don't know
  5. If you lose money in a mutual fund that you invested in through a bank, will the FDIC cover your losses?
    a.  Yes
    b.  No
    c.  Don't know
  6. When interest rates go up, do bond prices usually go up, go down, or stay about the same?
    a.  Go up
    b.  Go down
    c.  Stay about the same
    d.  Don't know
  7. Short-term investing is safer than long-term investing.
    a.  True
    b.  False
    c.  Don't know
  8. Most full-service brokers and financial planners are paid primarily:
    a.  Based on the quality of their advice and how much their clients earn
    b.  Based on the size and type of investment they sell to their clients
    c.  Don't know
  9. Illiquid investments are generally safer than liquid investments.
    a.  True
    b.  False
    c.  Don't know
  10. Generally, variable annuities are less risky than mutual funds.
    a.  True
    b.  False
    c.  Don't know

ANSWERS TO IPT/NASAA QUIZ

QUESTION ANSWER
1 a
2 a
3 b
4 b
5 b
6 b
7 b
8 b
9 b
10 b

Last updated: 2/19/2010 11:24:27 AM