Test your basic knowledge |

CSM Financial Management

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. Illiquidity - declining property values - lack of diversification - long depreciation period - management problems - syndicate investment is not a tax shelter






2. A debt security issued by a corporation and sold to investors - higher risk higher risk and government bond






3. Written promise to pay with legal conditions (indenture) - face value - maturity date - interest rate=coupon rate - trustee






4. 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






5. Evaluate potential investments - seek assistance if needed - monitor the value of investments - keep accurate and current records - consider tax consequences of selling






6. A portfolio management strategy and model for investing in fixed income that involves purchasing multiple bonds - each with different maturity dates






7. 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






8. 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






9. A nationally recognized - well-established and financially sound company






10. A short term debt obligation backed by the U.S. government with a maternity of less than one year






11. Investing in something that could have a risk of a world wide issue






12. 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






13. Income from dividends - potential stock split - appreciation of stock value






14. Medium amount of risk is involved






15. 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






16. Stocks buy& hold - dollar cost averaging - direct investment and DRIPS






17. Debenture bond - mortage bond - subordinated debenture bond - convertible bond - high yield bond






18. An order to buy or sell a security when it's price surpasses a certain point






19. Online research about listed companies






20. Direct: primary and secondary residences - commercial property - undeveloped land - foreclosures - Indirect: real estate syndicates - limited partnerships - real estate investment trusts - mortgages - participation certificates






21. Call feature - sinking fund - serial redemption






22. The process of selecting investments with a higher risk in order to profit from an anticipated price movement






23. A marketable fixed interest U.S. government debt security with a maturity of more than 10 years






24. The degree to which an asset or security can be bought or sold in the market without affecting the asset's price






25. Corporate earnings - earnings per share - price earnings rato (PE) - dividend payout - dividend yield - total return - beta - market to book ratio






26. Investing stock in a company and having the risk that it will shut down






27. 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






28. The uncertainty over the future real value (after inflation) of your investment






29. Stocks Day trading - margin buying - selling short - option trading






30. Asset allocation funds - balanced funds - value funds - money market funds - life cycle funds - funds of funds






31. 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






32. A type of preferred stock with a provision that stipulates that if any dividends have been omitted in the past they must be paid out to preferred stockholders before common shareholders can receive dividends






33. A stock that provides a constant dividend and stable earnings regardless of the state of the overall stock market






34. Diversification - affordability - professional management - liquidity - low transaction costs - no disadvantages






35. The risk that an investments value will change due to the change due to the change in the absolute level of interest rates






36. 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






37. Interest rate risk - face value volatility - no hedge against inflation - principal does not appreciate - difficult to compound






38. A lot of risk is involved






39. Balance your budget including an account for investments - pay off credit cards - start an emergency fund - have access to other cash for emergencies






40. Fundamental analysis - technical analysis - efficient market theory






41. Securities exchanges - over the counter market






42. 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






43. An equity security that pays regular often steadily increases dividends and offers a high yield that may generate the majority of overall returns






44. By make a risky investment you can be returned with a lot of money or losing some






45. Shares in a company whose earnings are expected to grow at an above average rate relative to the market






46. A market that exists between companies and financial institutions that is used to raise equity capital for the companies






47. Initial public offerings - investment banks






48. The risk inherent to the entire market or entire market segment unsystematic: company or industry specific risk that is inherent in each investment






49. An order placed with a brokerage to buy or sell a set number of shares at a specific price or better






50. 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