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






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






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






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






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






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






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






9. Securities exchanges - over the counter market






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






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






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






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






14. Not much risk is involved






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)






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






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






18. A stock that rises quickly when economic growth is strong and falls rapidly when growth is slowing down






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






20. Medium amount of risk is involved






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






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






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






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






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






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






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






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






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






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






31. Fundamental analysis - technical analysis - efficient market theory






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






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






34. Online research about listed companies






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






36. Initial public offerings - investment banks






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






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






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






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






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






42. A lot of risk is involved






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






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






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






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






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






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






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






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