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Test your basic knowledge |
CSM Financial Management
Start Test
Study First
Subjects
:
certifications
,
csm
,
business-skills
Instructions:
Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can
study here
.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.
This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks and bonds
Business failure risk
Mutual fund
Disadvantages of bonds
Why investors purchase common stock
2. Asset allocation funds - balanced funds - value funds - money market funds - life cycle funds - funds of funds
Government bond
Other funds
Treasury notes
Advantages of mutual funds
3. Not much risk is involved
Asset allocation
Long term techniques
Characteristics of a mutual fund
Conservative risk
4. Primary residence: you hold legal title - place to live - mortage interest is tax deductible - usually an inflation hedge - beware of housing bubbles
Aggressive risk
Features of real estate
Other funds
Disadvantage of real estate
5. Balance your budget including an account for investments - pay off credit cards - start an emergency fund - have access to other cash for emergencies
Government bond
Disadvantages of stocks
Disadvantage of real estate
Financial check up
6. An order placed with a brokerage to buy or sell a set number of shares at a specific price or better
Limit order
Obtaining money to inves
Diversification
Features of real estate
7. Aggressive growth funds - equity income funds - global stock funds - growth stock funds - index funds - international funds - large cap funds - mid cap funds - small cap funds - regional funds - sector funds - socially responsible funds
Global investment risk
Stock funds
Iinvestors choose precious metals
Speculative investment
8. An order to buy or sell a security when it's price surpasses a certain point
Stop order
Advantages of real estate
Disadvantages of stocks
Iinvestors choose precious metals
9. The risk that an investments value will change due to the change due to the change in the absolute level of interest rates
Asset allocation
Iinvestors choose precious metals
Business failure risk
Interest rate risk
10. Interest income: -paid semiannually on most bonds registered bonds - bearer bonds - zero coupon bonds - dollar appreciation of bond value - bond repayment at maturity: -bond laddering
Long term techniques
Why investors purchase mutual funds
Convertible preferred stock
Why investors purchase corporate bonds
11. Diversification - affordability - professional management - liquidity - low transaction costs - no disadvantages
Why investors purchase mutual funds
Advantages of real estate
Disadvantages of bonds
Advantages of mutual funds
12. Possible hedge against inflation - easy purchase on indirect ownership - limited financial responsibility for indirect ownership - financial leverage - positive cash flow - no management concerns on indirect ownership
Asset allocation
Equity capital
Blue chip
Advantages of real estate
13. Stocks Day trading - margin buying - selling short - option trading
Treasury bonds
Stock funds
Government bond
Short term techniques
14. Corporate earnings - earnings per share - price earnings rato (PE) - dividend payout - dividend yield - total return - beta - market to book ratio
Why corp issue common stock
Inflation risk
Income stock
Numerical measures for stocks
15. A lot of risk is involved
Treasury bonds
Corporate bond
Aggressive risk
Iinvestors choose precious metals
16. 1. What will you use money for 2. how much will you need 3. how long will it take 4. are there obstacles 5. will you make sacrifices 6. what if you don't reach the goal
Investment Goals
Characteristics of corporate bonds
Why investors purchase common stock
Short term techniques
17. By make a risky investment you can be returned with a lot of money or losing some
Asset allocation
Blue chip
Growth stock
Risk return trade-off
18. An investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goal
Asset allocation
Advantages of bonds
Growth stock
Bond laddering
19. Medium amount of risk is involved
Moderate risk
Investment theories
Disadvantages of stocks
Treasury notes
20. Stocks buy& hold - dollar cost averaging - direct investment and DRIPS
Long term techniques
Short term techniques
Classification of real estate investments
Secondary markets
21. Shares in a company whose earnings are expected to grow at an above average rate relative to the market
Equity capital
Iinvestors choose precious metals
Growth stock
Primary markets
22. Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares after a predetermined date
Blue chip
Limit order
Convertible preferred stock
Cumulative stock
23. Company could fail - market volatility - uncertain yield - management time required - risk
Business failure risk
Disadvantages of stocks
Defensive stock
Characteristics of a mutual fund
24. High interest rate than savings account - safe return of principles - less volatile than stocks - regular income - diversification of portfolio - low purchase price - ease of management - municipal bonds are tax free
Business failure risk
Advantages of bonds
Why corp issue common stock
Secondary markets
25. Online research about listed companies
Google Fimamce
Long term techniques
Other funds
Asset allocation
26. Interest rate risk - face value volatility - no hedge against inflation - principal does not appreciate - difficult to compound
Disadvantages of bonds
Bond laddering
Classification of real estate investments
Other funds
27. A marketable U.S. government debt security with a fixed interest rate and a maturity between one and 10 years
Treasury notes
Obtaining money to inves
Asset allocation
Investment theories
28. A short term debt obligation backed by the U.S. government with a maternity of less than one year
Treasury bills
Aggressive risk
Bond laddering
Advantages of bonds
29. Income from dividends - potential stock split - appreciation of stock value
Moderate risk
Interest rate risk
Classification of real estate investments
Why investors purchase common stock
30. A stock that rises quickly when economic growth is strong and falls rapidly when growth is slowing down
Investment theories
Business failure risk
Cyclical stock
Advantages of stocks
31. The uncertainty over the future real value (after inflation) of your investment
Treasury bills
Interest rate risk
Bond laddering
Inflation risk
32. To raise money for start up - on going activities or expansion - no repayment required - dividends are not mandatory - they lose some control of the company through voting rights
Market order
Treasury bonds
Why corp issue common stock
Advantages of stocks
33. Close ended funds (2%): shares are traded limited and must purchase from another investor -exchange trade funds (6%): tied to a specfic index - open end funds (92%): shares issued and redeemed by the company at net asset value (NAV)
Market risk systematic
Defensive stock
Why investors purchase corporate bonds
Characteristics of a mutual fund
34. A stock that provides a constant dividend and stable earnings regardless of the state of the overall stock market
Treasury bonds
Conservative risk
Defensive stock
Equity capital
35. Illiquidity - declining property values - lack of diversification - long depreciation period - management problems - syndicate investment is not a tax shelter
Inflation risk
Corporate bond
Investment Goals
Disadvantage of real estate
36. Hedge against inflation - safe haven during political or economic upheavals - need a storage place - can be risky-not easy to turn to cash - difficult to appraise
Market order
Disadvantages of stocks
Mutual fund
Iinvestors choose precious metals
37. Pay yourself and make investing automatic - save extra funds like gifts - partcipate in your employeers retirement plan - make installment payments to yourself - break a habit - get a part-time job
Investment theories
Obtaining money to inves
Treasury bills
Market risk systematic
38. High yield funds ( junk bonds) - long term corporate - long term U.S. - intermediate corporate - intermediate U.S. - short term corporate - short term U.S. - municipal bonds - world bond funds
Classification of real estate investments
Bond funds
Google Fimamce
Treasury bills
39. Direct: primary and secondary residences - commercial property - undeveloped land - foreclosures - Indirect: real estate syndicates - limited partnerships - real estate investment trusts - mortgages - participation certificates
Characteristics of corporate bonds
Convertible preferred stock
Classification of real estate investments
Advantages of mutual funds
40. A nationally recognized - well-established and financially sound company
Market risk systematic
Google Fimamce
Blue chip
Defensive stock
41. A debt security issued by a government spending most often issued in the country's domestic currency
Asset allocation
Equity capital
Government bond
Mutual fund
42. A portfolio management strategy and model for investing in fixed income that involves purchasing multiple bonds - each with different maturity dates
Numerical measures for stocks
Bond laddering
Secondary markets
Iinvestors choose precious metals
43. The process of selecting investments with a higher risk in order to profit from an anticipated price movement
Obtaining money to inves
Corporate bond
Speculative investment
Market risk systematic
44. An order that an investor makes through a broker or brokerage service to buy or sell an investment immediately at the best available current price
Market order
Other funds
Disadvantage of real estate
Treasury bonds
45. Evaluate potential investments - seek assistance if needed - monitor the value of investments - keep accurate and current records - consider tax consequences of selling
Investment theories
Your role in the investment process
Liquidity
Interest rate risk
46. Written promise to pay with legal conditions (indenture) - face value - maturity date - interest rate=coupon rate - trustee
Diversification
Moderate risk
Google Fimamce
Characteristics of corporate bonds
47. The degree to which an asset or security can be bought or sold in the market without affecting the asset's price
Provisions for repayment
Liquidity
Market order
Other funds
48. Investing stock in a company and having the risk that it will shut down
Mutual fund
Business failure risk
Advantages of stocks
Blue chip
49. Debenture bond - mortage bond - subordinated debenture bond - convertible bond - high yield bond
Speculative investment
Stop order
Aggressive risk
Types of bonds
50. An equity security that pays regular often steadily increases dividends and offers a high yield that may generate the majority of overall returns
Income stock
Provisions for repayment
Market risk systematic
Secondary markets