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Test your basic knowledge |
CSM Financial Management
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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. Diversification - affordability - professional management - liquidity - low transaction costs - no disadvantages
Moderate risk
Classification of real estate investments
Convertible preferred stock
Advantages of mutual funds
2. Not much risk is involved
Conservative risk
Short term techniques
Bond funds
Defensive stock
3. Company could fail - market volatility - uncertain yield - management time required - risk
Numerical measures for stocks
Treasury bonds
Secondary markets
Disadvantages of stocks
4. Initial public offerings - investment banks
Your role in the investment process
Primary markets
Cyclical stock
Advantages of real estate
5. A marketable fixed interest U.S. government debt security with a maturity of more than 10 years
Why investors purchase corporate bonds
Defensive stock
Treasury bonds
Government bond
6. 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
Investment Goals
Defensive stock
Advantages of real estate
Iinvestors choose precious metals
7. An equity security that pays regular often steadily increases dividends and offers a high yield that may generate the majority of overall returns
Growth stock
Income stock
Mutual fund
Why investors purchase common stock
8. The risk that an investments value will change due to the change due to the change in the absolute level of interest rates
Why corp issue common stock
Defensive stock
Stop order
Interest rate risk
9. A stock that provides a constant dividend and stable earnings regardless of the state of the overall stock market
Characteristics of corporate bonds
Defensive stock
Market risk systematic
Advantages of mutual funds
10. 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
Stock funds
Interest rate risk
Advantages of stocks
Growth stock
11. 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
Income stock
Why investors purchase common stock
Global investment risk
Obtaining money to inves
12. Stocks buy& hold - dollar cost averaging - direct investment and DRIPS
Long term techniques
Disadvantages of stocks
Disadvantages of bonds
Cumulative stock
13. 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
Market order
Cumulative stock
Why investors purchase corporate bonds
Advantages of bonds
14. Income from dividends - potential stock split - appreciation of stock value
Why investors purchase common stock
Secondary markets
Market order
Iinvestors choose precious metals
15. The uncertainty over the future real value (after inflation) of your investment
Growth stock
Business failure risk
Inflation risk
Iinvestors choose precious metals
16. 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
Advantages of mutual funds
Mutual fund
Why corp issue common stock
17. Illiquidity - declining property values - lack of diversification - long depreciation period - management problems - syndicate investment is not a tax shelter
Bond funds
Speculative investment
Advantages of mutual funds
Disadvantage of real estate
18. 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
Why investors purchase common stock
Treasury bonds
Iinvestors choose precious metals
Growth stock
19. A risk management technique that mixes a wide variety of invests within a portfolio
Primary markets
Advantages of bonds
Diversification
Government bond
20. An investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goal
Cyclical stock
Mutual fund
Asset allocation
Defensive stock
21. Shares in a company whose earnings are expected to grow at an above average rate relative to the market
Diversification
Why investors purchase common stock
Google Fimamce
Growth stock
22. The risk inherent to the entire market or entire market segment unsystematic: company or industry specific risk that is inherent in each investment
Market risk systematic
Investment Goals
Your role in the investment process
Other funds
23. Written promise to pay with legal conditions (indenture) - face value - maturity date - interest rate=coupon rate - trustee
Disadvantages of stocks
Other funds
Treasury notes
Characteristics of corporate bonds
24. 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)
Characteristics of a mutual fund
Asset allocation
Market order
Why investors purchase common stock
25. 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
Features of real estate
Disadvantages of stocks
Cumulative stock
26. Debenture bond - mortage bond - subordinated debenture bond - convertible bond - high yield bond
Diversification
Characteristics of a mutual fund
Types of bonds
Equity capital
27. Direct: primary and secondary residences - commercial property - undeveloped land - foreclosures - Indirect: real estate syndicates - limited partnerships - real estate investment trusts - mortgages - participation certificates
Cyclical stock
Equity capital
Classification of real estate investments
Why investors purchase common stock
28. Interest rate risk - face value volatility - no hedge against inflation - principal does not appreciate - difficult to compound
Income stock
Disadvantages of bonds
Primary markets
Aggressive risk
29. A stock that rises quickly when economic growth is strong and falls rapidly when growth is slowing down
Primary markets
Classification of real estate investments
Aggressive risk
Cyclical stock
30. Stocks Day trading - margin buying - selling short - option trading
Disadvantage of real estate
Growth stock
Liquidity
Short term techniques
31. The process of selecting investments with a higher risk in order to profit from an anticipated price movement
Cyclical stock
Iinvestors choose precious metals
Financial check up
Speculative investment
32. A marketable U.S. government debt security with a fixed interest rate and a maturity between one and 10 years
Treasury notes
Bond funds
Equity capital
Classification of real estate investments
33. Combines funds of investors and invests those monies in a diversified portfolio of securities issued by corporations or governments that meet the fund objective
Advantages of stocks
Blue chip
Why investors purchase mutual funds
Provisions for repayment
34. A market that exists between companies and financial institutions that is used to raise equity capital for the companies
Why corp issue common stock
Equity capital
Treasury notes
Bond funds
35. Evaluate potential investments - seek assistance if needed - monitor the value of investments - keep accurate and current records - consider tax consequences of selling
Your role in the investment process
Types of bonds
Google Fimamce
Disadvantages of bonds
36. A debt security issued by a government spending most often issued in the country's domestic currency
Disadvantages of bonds
Mutual fund
Defensive stock
Government bond
37. 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
Equity capital
Why investors purchase corporate bonds
Treasury notes
Treasury bills
38. Asset allocation funds - balanced funds - value funds - money market funds - life cycle funds - funds of funds
Aggressive risk
Classification of real estate investments
Other funds
Iinvestors choose precious metals
39. 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
Cyclical stock
Income stock
Bond funds
Why investors purchase common stock
40. 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
Stop order
Obtaining money to inves
41. 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
Advantages of real estate
Market order
Other funds
Provisions for repayment
42. 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
Growth stock
Advantages of stocks
Convertible preferred stock
Limit order
43. Online research about listed companies
Types of bonds
Primary markets
Market order
Google Fimamce
44. A nationally recognized - well-established and financially sound company
Blue chip
Iinvestors choose precious metals
Market risk systematic
Why investors purchase mutual funds
45. Cash dividends - price appearance - hedge against inflation - low minimum investment - limited liability - liquidity
Advantages of stocks
Stock funds
Interest rate risk
Aggressive risk
46. The degree to which an asset or security can be bought or sold in the market without affecting the asset's price
Financial check up
Speculative investment
Liquidity
Numerical measures for stocks
47. 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
Market order
Disadvantages of bonds
Google Fimamce
Advantages of real estate
48. Investing in something that could have a risk of a world wide issue
Business failure risk
Why investors purchase common stock
Global investment risk
Stop order
49. An order to buy or sell a security when it's price surpasses a certain point
Stop order
Characteristics of corporate bonds
Blue chip
Government bond
50. Fundamental analysis - technical analysis - efficient market theory
Disadvantages of bonds
Secondary markets
Stop order
Investment theories