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Test your basic knowledge |
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
Government bond
Why investors purchase common stock
Primary markets
Liquidity
2. Written promise to pay with legal conditions (indenture) - face value - maturity date - interest rate=coupon rate - trustee
Investment Goals
Bond funds
Characteristics of corporate bonds
Business failure risk
3. 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
Advantages of real estate
Advantages of bonds
Investment theories
Corporate bond
4. Illiquidity - declining property values - lack of diversification - long depreciation period - management problems - syndicate investment is not a tax shelter
Characteristics of a mutual fund
Disadvantage of real estate
Investment theories
Classification of real estate investments
5. Primary residence: you hold legal title - place to live - mortage interest is tax deductible - usually an inflation hedge - beware of housing bubbles
Features of real estate
Defensive stock
Aggressive risk
Treasury notes
6. 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)
Numerical measures for stocks
Other funds
Characteristics of a mutual fund
Your role in the investment process
7. A portfolio management strategy and model for investing in fixed income that involves purchasing multiple bonds - each with different maturity dates
Market order
Defensive stock
Equity capital
Bond laddering
8. Fundamental analysis - technical analysis - efficient market theory
Bond laddering
Defensive stock
Mutual fund
Investment theories
9. 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
Why corp issue common stock
Treasury bills
Why investors purchase common stock
Your role in the investment process
10. Not much risk is involved
Conservative risk
Liquidity
Obtaining money to inves
Long term techniques
11. A stock that rises quickly when economic growth is strong and falls rapidly when growth is slowing down
Advantages of real estate
Your role in the investment process
Cyclical stock
Short term techniques
12. 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
Risk return trade-off
Blue chip
Stock funds
Disadvantages of stocks
13. Direct: primary and secondary residences - commercial property - undeveloped land - foreclosures - Indirect: real estate syndicates - limited partnerships - real estate investment trusts - mortgages - participation certificates
Disadvantages of bonds
Treasury notes
Classification of real estate investments
Advantages of mutual funds
14. Asset allocation funds - balanced funds - value funds - money market funds - life cycle funds - funds of funds
Income stock
Conservative risk
Advantages of stocks
Other funds
15. A market that exists between companies and financial institutions that is used to raise equity capital for the companies
Equity capital
Blue chip
Why investors purchase common stock
Financial check up
16. 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
Inflation risk
Why investors purchase corporate bonds
Financial check up
Government bond
17. A marketable fixed interest U.S. government debt security with a maturity of more than 10 years
Treasury bonds
Market risk systematic
Treasury notes
Speculative investment
18. Combines funds of investors and invests those monies in a diversified portfolio of securities issued by corporations or governments that meet the fund objective
Income stock
Why investors purchase mutual funds
Advantages of bonds
Short term techniques
19. A marketable U.S. government debt security with a fixed interest rate and a maturity between one and 10 years
Cumulative stock
Corporate bond
Treasury notes
Iinvestors choose precious metals
20. Diversification - affordability - professional management - liquidity - low transaction costs - no disadvantages
Obtaining money to inves
Growth stock
Treasury bills
Advantages of mutual funds
21. Investing stock in a company and having the risk that it will shut down
Financial check up
Why investors purchase mutual funds
Treasury bonds
Business failure risk
22. 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
Features of real estate
Investment theories
Bond funds
Advantages of real estate
23. The degree to which an asset or security can be bought or sold in the market without affecting the asset's price
Treasury bills
Characteristics of a mutual fund
Liquidity
Disadvantage of real estate
24. 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
Classification of real estate investments
Risk return trade-off
Stop order
Cumulative stock
25. 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
Mutual fund
Corporate bond
Advantages of mutual funds
Investment theories
26. Investing in something that could have a risk of a world wide issue
Global investment risk
Investment theories
Disadvantages of stocks
Your role in the investment process
27. Cash dividends - price appearance - hedge against inflation - low minimum investment - limited liability - liquidity
Interest rate risk
Investment theories
Why investors purchase corporate bonds
Advantages of stocks
28. Online research about listed companies
Aggressive risk
Interest rate risk
Diversification
Google Fimamce
29. Company could fail - market volatility - uncertain yield - management time required - risk
Features of real estate
Market order
Equity capital
Disadvantages of stocks
30. A lot of risk is involved
Characteristics of a mutual fund
Aggressive risk
Other funds
Advantages of bonds
31. Securities exchanges - over the counter market
Your role in the investment process
Treasury bonds
Secondary markets
Aggressive risk
32. A debt security issued by a corporation and sold to investors - higher risk higher risk and government bond
Financial check up
Corporate bond
Treasury bonds
Characteristics of a mutual fund
33. Debenture bond - mortage bond - subordinated debenture bond - convertible bond - high yield bond
Financial check up
Types of bonds
Inflation risk
Diversification
34. Stocks buy& hold - dollar cost averaging - direct investment and DRIPS
Long term techniques
Stock funds
Short term techniques
Cyclical stock
35. Balance your budget including an account for investments - pay off credit cards - start an emergency fund - have access to other cash for emergencies
Secondary markets
Provisions for repayment
Financial check up
Disadvantages of stocks
36. Medium amount of risk is involved
Why investors purchase common stock
Disadvantage of real estate
Market risk systematic
Moderate risk
37. By make a risky investment you can be returned with a lot of money or losing some
Risk return trade-off
Primary markets
Inflation risk
Why investors purchase corporate bonds
38. Stocks Day trading - margin buying - selling short - option trading
Bond laddering
Disadvantages of bonds
Defensive stock
Short term techniques
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
Defensive stock
Market order
Provisions for repayment
Short term techniques
40. The risk that an investments value will change due to the change due to the change in the absolute level of interest rates
Characteristics of corporate bonds
Advantages of stocks
Interest rate risk
Why investors purchase corporate bonds
41. Evaluate potential investments - seek assistance if needed - monitor the value of investments - keep accurate and current records - consider tax consequences of selling
Market risk systematic
Characteristics of corporate bonds
Your role in the investment process
Iinvestors choose precious metals
42. A nationally recognized - well-established and financially sound company
Stop order
Investment theories
Blue chip
Interest rate risk
43. 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
Global investment risk
Market order
Investment Goals
Bond laddering
44. The uncertainty over the future real value (after inflation) of your investment
Defensive stock
Features of real estate
Inflation risk
Advantages of stocks
45. A short term debt obligation backed by the U.S. government with a maternity of less than one year
Cumulative stock
Treasury bonds
Treasury bills
Defensive stock
46. An order placed with a brokerage to buy or sell a set number of shares at a specific price or better
Limit order
Speculative investment
Global investment risk
Conservative risk
47. An order to buy or sell a security when it's price surpasses a certain point
Secondary markets
Bond funds
Stop order
Income stock
48. 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
Treasury notes
Obtaining money to inves
Market risk systematic
Characteristics of corporate bonds
49. Call feature - sinking fund - serial redemption
Stock funds
Provisions for repayment
Characteristics of a mutual fund
Liquidity
50. Income from dividends - potential stock split - appreciation of stock value
Why investors purchase common stock
Bond laddering
Inflation risk
Advantages of bonds