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 tax purposes, a capital gain is considered long term if the investment was held more than:

1 day.
1 month.
1 year.
10 years.

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.

Long-term care insurance:

Is only for the very elderly.
Can help protect assets from the cost of a nursing home stay.
Is not necessary since Medicare always covers long-term care.
Is always available regardless of your past health history.

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.

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

5,000.
500.
30.
10.

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.

Junk bonds:

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

A prudent investor:

Does not have to consider the tax effect of long-term gains.
Evaluates his/her investments on an after-tax basis.
Studiously avoids income-shifting among funds.
Knows that a drop in the dividend payout signals a stronger firm.

 
   
   
BBM Financial Services, Inc.
1440 North 16th Avenue / PO Box 22700 • Yakima, WA • 98907
Phone: 509.248.7930 / 800.647.0932 / 509.248.7944 • Fax: 509.457.6503
www.bbmfs.com • trina@bbmfs.com

Craig Mendenhall, Steve Pilger, and Trina Good offer securities products & services through Royal Alliance Associates, Inc. Member FINRA/SIPC, a registered broker-dealer. In this regard, this communication is strictly intended for individuals residing in the states of Alaska, Arizona, California, Idaho, Ohio, Oregon, Texas, and Washington.  No offers may be made or accepted from any resident outside the specific state(s) referenced.

Craig Mendenhall and Steve Pilger offer advisory services in the state of Washingtion through BBM Financial Services, a registered investment advisor, not affiliated with Royal Alliance Associates.  Craig Mendenhall offers additional advisory services through Royal Alliance Associates, Inc.

A broker/dealer, investment advisor, BD agent or IA representative may only transact business in a particular state after licensure or satisfying qualification requirements of that state, or only if they are excluded or exempted from the state`s broker/dealer, investment advisor, BD agent or IA rep requirements, as the case may be: and follow up, individualized responses to consumers in a particular state by a broker/dealer, investment advisor, BD agent, or IA rep that involve either the effecting or attempting to effect transactions in securities or the rendering of personal investment advice for compensation, as the case may be, shall not be made without first complying with the state`s broker/ dealer, investment advisor, DB agent or IA rep requirements, or pursuant to an applicable state exemption or exclusion. For information concerning the licensure status or disciplinary history of a broker/dealer, investment advisor, BD agent, or IA rep, a consumer should contact his or her state securities law administrator.