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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 order to buy or sell a security when it's price surpasses a certain point
Stop order
Conservative risk
Cumulative stock
Characteristics of a mutual fund
2. 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
Stock funds
Disadvantage of real estate
Advantages of stocks
Iinvestors choose precious metals
3. A nationally recognized - well-established and financially sound company
Your role in the investment process
Numerical measures for stocks
Blue chip
Diversification
4. Interest rate risk - face value volatility - no hedge against inflation - principal does not appreciate - difficult to compound
Advantages of mutual funds
Characteristics of corporate bonds
Market risk systematic
Disadvantages of bonds
5. Stocks Day trading - margin buying - selling short - option trading
Why investors purchase corporate bonds
Bond laddering
Inflation risk
Short term techniques
6. Income from dividends - potential stock split - appreciation of stock value
Why investors purchase corporate bonds
Why investors purchase common stock
Speculative investment
Primary markets
7. A debt security issued by a corporation and sold to investors - higher risk higher risk and government bond
Disadvantages of stocks
Government bond
Stock funds
Corporate bond
8. Asset allocation funds - balanced funds - value funds - money market funds - life cycle funds - funds of funds
Primary markets
Other funds
Treasury bonds
Cumulative stock
9. Securities exchanges - over the counter market
Advantages of stocks
Global investment risk
Inflation risk
Secondary markets
10. 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
Iinvestors choose precious metals
Mutual fund
Investment theories
Bond laddering
11. The uncertainty over the future real value (after inflation) of your investment
Secondary markets
Disadvantage of real estate
Inflation risk
Characteristics of corporate bonds
12. Investing stock in a company and having the risk that it will shut down
Mutual fund
Why investors purchase corporate bonds
Business failure risk
Bond laddering
13. By make a risky investment you can be returned with a lot of money or losing some
Iinvestors choose precious metals
Risk return trade-off
Mutual fund
Bond laddering
14. Not much risk is involved
Risk return trade-off
Equity capital
Conservative risk
Diversification
15. 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)
Characteristics of a mutual fund
Moderate risk
Disadvantages of bonds
Limit order
16. Balance your budget including an account for investments - pay off credit cards - start an emergency fund - have access to other cash for emergencies
Financial check up
Why investors purchase corporate bonds
Stock funds
Bond funds
17. A marketable fixed interest U.S. government debt security with a maturity of more than 10 years
Treasury bonds
Mutual fund
Why investors purchase common stock
Defensive stock
18. A stock that rises quickly when economic growth is strong and falls rapidly when growth is slowing down
Global investment risk
Cyclical stock
Why investors purchase mutual funds
Treasury bonds
19. An equity security that pays regular often steadily increases dividends and offers a high yield that may generate the majority of overall returns
Why investors purchase mutual funds
Income stock
Diversification
Provisions for repayment
20. Medium amount of risk is involved
Moderate risk
Advantages of real estate
Secondary markets
Disadvantages of bonds
21. A short term debt obligation backed by the U.S. government with a maternity of less than one year
Short term techniques
Advantages of bonds
Inflation risk
Treasury bills
22. 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
Features of real estate
Treasury bonds
Why corp issue common stock
23. The degree to which an asset or security can be bought or sold in the market without affecting the asset's price
Why investors purchase mutual funds
Short term techniques
Why investors purchase common stock
Liquidity
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
Advantages of bonds
Why investors purchase common stock
Risk return trade-off
Blue chip
25. Debenture bond - mortage bond - subordinated debenture bond - convertible bond - high yield bond
Types of bonds
Secondary markets
Your role in the investment process
Treasury bills
26. A market that exists between companies and financial institutions that is used to raise equity capital for the companies
Equity capital
Characteristics of a mutual fund
Advantages of real estate
Aggressive risk
27. The risk that an investments value will change due to the change due to the change in the absolute level of interest rates
Disadvantage of real estate
Growth stock
Convertible preferred stock
Interest rate risk
28. Illiquidity - declining property values - lack of diversification - long depreciation period - management problems - syndicate investment is not a tax shelter
Corporate bond
Advantages of real estate
Disadvantages of stocks
Disadvantage of real estate
29. A marketable U.S. government debt security with a fixed interest rate and a maturity between one and 10 years
Corporate bond
Stop order
Why corp issue common stock
Treasury notes
30. 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
Your role in the investment process
Stop order
Convertible preferred stock
Blue chip
31. Fundamental analysis - technical analysis - efficient market theory
Investment theories
Treasury notes
Limit order
Growth stock
32. Diversification - affordability - professional management - liquidity - low transaction costs - no disadvantages
Advantages of mutual funds
Provisions for repayment
Why investors purchase common stock
Types of bonds
33. Primary residence: you hold legal title - place to live - mortage interest is tax deductible - usually an inflation hedge - beware of housing bubbles
Features of real estate
Risk return trade-off
Moderate risk
Conservative risk
34. Online research about listed companies
Cumulative stock
Google Fimamce
Disadvantages of bonds
Market order
35. Company could fail - market volatility - uncertain yield - management time required - risk
Growth stock
Market risk systematic
Disadvantages of stocks
Features of real estate
36. Initial public offerings - investment banks
Investment theories
Primary markets
Stock funds
Asset allocation
37. 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
Global investment risk
Conservative risk
Disadvantage of real estate
Investment Goals
38. Written promise to pay with legal conditions (indenture) - face value - maturity date - interest rate=coupon rate - trustee
Secondary markets
Risk return trade-off
Characteristics of corporate bonds
Advantages of stocks
39. Shares in a company whose earnings are expected to grow at an above average rate relative to the market
Growth stock
Inflation risk
Features of real estate
Advantages of stocks
40. Corporate earnings - earnings per share - price earnings rato (PE) - dividend payout - dividend yield - total return - beta - market to book ratio
Speculative investment
Numerical measures for stocks
Short term techniques
Mutual fund
41. 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
Short term techniques
Advantages of real estate
Obtaining money to inves
Income stock
42. A lot of risk is involved
Bond laddering
Other funds
Aggressive risk
Disadvantage of real estate
43. A portfolio management strategy and model for investing in fixed income that involves purchasing multiple bonds - each with different maturity dates
Equity capital
Bond laddering
Investment Goals
Primary markets
44. The process of selecting investments with a higher risk in order to profit from an anticipated price movement
Blue chip
Advantages of mutual funds
Interest rate risk
Speculative investment
45. Combines funds of investors and invests those monies in a diversified portfolio of securities issued by corporations or governments that meet the fund objective
Provisions for repayment
Types of bonds
Why investors purchase mutual funds
Risk return trade-off
46. A debt security issued by a government spending most often issued in the country's domestic currency
Advantages of real estate
Provisions for repayment
Other funds
Government bond
47. An order placed with a brokerage to buy or sell a set number of shares at a specific price or better
Disadvantages of stocks
Limit order
Business failure risk
Advantages of stocks
48. 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
Defensive stock
Moderate risk
Bond funds
Conservative risk
49. Direct: primary and secondary residences - commercial property - undeveloped land - foreclosures - Indirect: real estate syndicates - limited partnerships - real estate investment trusts - mortgages - participation certificates
Market risk systematic
Disadvantages of bonds
Long term techniques
Classification of real estate investments
50. Investing in something that could have a risk of a world wide issue
Global investment risk
Characteristics of a mutual fund
Risk return trade-off
Obtaining money to inves