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






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






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






4. Fundamental analysis - technical analysis - efficient market theory






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






6. 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






7. A marketable U.S. government debt security with a fixed interest rate and a maturity between one and 10 years






8. Combines funds of investors and invests those monies in a diversified portfolio of securities issued by corporations or governments that meet the fund objective






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






10. Company could fail - market volatility - uncertain yield - management time required - risk






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






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






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






14. 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






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






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






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






18. Online research about listed companies






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






20. 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






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






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






23. A risk management technique that mixes a wide variety of invests within a portfolio






24. Primary residence: you hold legal title - place to live - mortage interest is tax deductible - usually an inflation hedge - beware of housing bubbles






25. 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






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






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






28. Not much risk is involved






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






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






31. Securities exchanges - over the counter market






32. Call feature - sinking fund - serial redemption






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






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






35. Initial public offerings - investment banks






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






37. 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






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






39. Cash dividends - price appearance - hedge against inflation - low minimum investment - limited liability - liquidity






40. 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






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






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






43. A debt security issued by a government spending most often issued in the country's domestic currency






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






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






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






47. 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






48. A lot of risk is involved






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






50. 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







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