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






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






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






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






5. 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






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






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






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






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






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






11. 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






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






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






14. A lot of risk is involved






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






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






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






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






19. 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)






20. An investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goal






21. 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






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






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






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






25. Call feature - sinking fund - serial redemption






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






27. 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






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






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






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






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






32. Not much risk is involved






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






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






35. Securities exchanges - over the counter market






36. 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






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






38. Fundamental analysis - technical analysis - efficient market theory






39. Online research about listed companies






40. 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






41. 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






42. 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






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






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






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






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






47. Medium amount of risk is involved






48. 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






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






50. 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







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