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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. 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
Provisions for repayment
Obtaining money to inves
Risk return trade-off
Disadvantages of stocks
2. Cash dividends - price appearance - hedge against inflation - low minimum investment - limited liability - liquidity
Obtaining money to inves
Cumulative stock
Provisions for repayment
Advantages of stocks
3. An investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goal
Advantages of mutual funds
Limit order
Treasury notes
Asset allocation
4. 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
Advantages of bonds
Convertible preferred stock
Advantages of stocks
Defensive stock
5. A lot of risk is involved
Iinvestors choose precious metals
Conservative risk
Interest rate risk
Aggressive risk
6. 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
Conservative risk
Long term techniques
Asset allocation
7. Investing stock in a company and having the risk that it will shut down
Business failure risk
Google Fimamce
Treasury notes
Inflation risk
8. A stock that provides a constant dividend and stable earnings regardless of the state of the overall stock market
Why investors purchase mutual funds
Equity capital
Risk return trade-off
Defensive stock
9. Stocks Day trading - margin buying - selling short - option trading
Short term techniques
Obtaining money to inves
Diversification
Corporate bond
10. 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
Provisions for repayment
Why corp issue common stock
Advantages of real estate
Iinvestors choose precious metals
11. Call feature - sinking fund - serial redemption
Numerical measures for stocks
Why investors purchase mutual funds
Long term techniques
Provisions for repayment
12. 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
Cumulative stock
Treasury bonds
Your role in the investment process
Market risk systematic
13. Debenture bond - mortage bond - subordinated debenture bond - convertible bond - high yield bond
Asset allocation
Why corp issue common stock
Investment Goals
Types of bonds
14. Online research about listed companies
Obtaining money to inves
Why investors purchase mutual funds
Iinvestors choose precious metals
Google Fimamce
15. The risk that an investments value will change due to the change due to the change in the absolute level of interest rates
Why investors purchase common stock
Interest rate risk
Defensive stock
Convertible preferred stock
16. 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
Bond laddering
Risk return trade-off
Business failure risk
Advantages of real estate
17. 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
Why corp issue common stock
Investment theories
Investment Goals
Treasury bills
18. 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
Moderate risk
Bond laddering
Disadvantage of real estate
Why investors purchase corporate bonds
19. 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
Advantages of bonds
Advantages of real estate
Classification of real estate investments
20. Diversification - affordability - professional management - liquidity - low transaction costs - no disadvantages
Other funds
Iinvestors choose precious metals
Conservative risk
Advantages of mutual funds
21. 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
Market risk systematic
Investment Goals
Advantages of mutual funds
22. The uncertainty over the future real value (after inflation) of your investment
Investment Goals
Numerical measures for stocks
Your role in the investment process
Inflation risk
23. Interest rate risk - face value volatility - no hedge against inflation - principal does not appreciate - difficult to compound
Liquidity
Provisions for repayment
Financial check up
Disadvantages of bonds
24. An order to buy or sell a security when it's price surpasses a certain point
Secondary markets
Growth stock
Stop order
Blue chip
25. 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
Investment Goals
Moderate risk
26. Asset allocation funds - balanced funds - value funds - money market funds - life cycle funds - funds of funds
Other funds
Cyclical stock
Growth stock
Why investors purchase corporate bonds
27. 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)
Moderate risk
Disadvantage of real estate
Blue chip
Characteristics of a mutual fund
28. A short term debt obligation backed by the U.S. government with a maternity of less than one year
Mutual fund
Diversification
Equity capital
Treasury bills
29. An equity security that pays regular often steadily increases dividends and offers a high yield that may generate the majority of overall returns
Blue chip
Treasury notes
Investment theories
Income stock
30. Fundamental analysis - technical analysis - efficient market theory
Treasury bonds
Investment theories
Bond laddering
Secondary markets
31. By make a risky investment you can be returned with a lot of money or losing some
Treasury bills
Advantages of real estate
Numerical measures for stocks
Risk return trade-off
32. Income from dividends - potential stock split - appreciation of stock value
Cumulative stock
Moderate risk
Defensive stock
Why investors purchase common stock
33. A risk management technique that mixes a wide variety of invests within a portfolio
Diversification
Bond laddering
Why corp issue common stock
Advantages of stocks
34. A stock that rises quickly when economic growth is strong and falls rapidly when growth is slowing down
Stop order
Cyclical stock
Conservative risk
Risk return trade-off
35. 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
Defensive stock
Limit order
Short term techniques
Stock funds
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
Long term techniques
Your role in the investment process
Mutual fund
Obtaining money to inves
37. Corporate earnings - earnings per share - price earnings rato (PE) - dividend payout - dividend yield - total return - beta - market to book ratio
Disadvantage of real estate
Income stock
Business failure risk
Numerical measures for stocks
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
Bond funds
Disadvantage of real estate
Mutual fund
Advantages of mutual funds
39. Medium amount of risk is involved
Growth stock
Moderate risk
Mutual fund
Numerical measures for stocks
40. Initial public offerings - investment banks
Why corp issue common stock
Disadvantages of bonds
Primary markets
Aggressive risk
41. An order placed with a brokerage to buy or sell a set number of shares at a specific price or better
Iinvestors choose precious metals
Advantages of real estate
Limit order
Classification of real estate investments
42. A market that exists between companies and financial institutions that is used to raise equity capital for the companies
Limit order
Disadvantage of real estate
Stop order
Equity capital
43. 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
Financial check up
Stock funds
Stop order
Market order
44. Not much risk is involved
Conservative risk
Disadvantages of stocks
Disadvantage of real estate
Mutual fund
45. The process of selecting investments with a higher risk in order to profit from an anticipated price movement
Mutual fund
Speculative investment
Liquidity
Disadvantages of bonds
46. A marketable U.S. government debt security with a fixed interest rate and a maturity between one and 10 years
Treasury bills
Characteristics of corporate bonds
Secondary markets
Treasury notes
47. Shares in a company whose earnings are expected to grow at an above average rate relative to the market
Growth stock
Moderate risk
Market risk systematic
Cyclical stock
48. A debt security issued by a corporation and sold to investors - higher risk higher risk and government bond
Cumulative stock
Corporate bond
Market risk systematic
Long term techniques
49. A debt security issued by a government spending most often issued in the country's domestic currency
Blue chip
Growth stock
Disadvantages of stocks
Government bond
50. Company could fail - market volatility - uncertain yield - management time required - risk
Disadvantages of bonds
Disadvantages of stocks
Investment theories
Inflation risk