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






2. 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






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






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






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






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






7. The risk inherent to the entire market or entire market segment unsystematic: company or industry specific risk that is inherent in each investment






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






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






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






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






13. 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)






14. 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






15. A lot of risk is involved






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






17. Call feature - sinking fund - serial redemption






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






19. Initial public offerings - investment banks






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






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






22. 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






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






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






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






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






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






28. 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






29. 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






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






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






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






33. Medium amount of risk is involved






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






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






36. Fundamental analysis - technical analysis - efficient market theory






37. Online research about listed companies






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






39. 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






40. 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






41. 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






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






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






44. 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






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






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






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






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






49. Not much risk is involved






50. 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







Sorry!:) No result found.

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