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CSM Financial Management

  • Answer 50 questions in 15 minutes.
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  • Match each statement with the correct term.
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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. Balance your budget including an account for investments - pay off credit cards - start an emergency fund - have access to other cash for emergencies

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

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

4. Initial public offerings - investment banks

5. Call feature - sinking fund - serial redemption

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

7. A lot of risk is involved

8. 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

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

10. 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

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

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

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

14. 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

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

16. Securities exchanges - over the counter market

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

18. 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

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

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

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

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

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

24. Online research about listed companies

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

26. Medium amount of risk is involved

27. 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

28. 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

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

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

31. 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

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

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

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

35. 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

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

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

38. Combines funds of investors and invests those monies in a diversified portfolio of securities issued by corporations or governments that meet the fund objective

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

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

42. Fundamental analysis - technical analysis - efficient market theory

43. 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

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

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

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

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

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

49. 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

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