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






2. 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






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






4. Online research about listed companies






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






6. Fundamental analysis - technical analysis - efficient market theory






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






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






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






10. Not much risk is involved






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






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






13. Medium amount of risk is involved






14. 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






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






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






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






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






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






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






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






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. 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)






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






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






26. A lot of risk is involved






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






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






29. 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






30. 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






31. 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






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






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






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






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






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






37. Initial public offerings - investment banks






38. Call feature - sinking fund - serial redemption






39. 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






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






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






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






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






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






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






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






47. 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






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






49. 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






50. 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