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