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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. 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
Aggressive risk
Inflation risk
Equity capital
Advantages of real estate
2. Combines funds of investors and invests those monies in a diversified portfolio of securities issued by corporations or governments that meet the fund objective
Why investors purchase mutual funds
Advantages of stocks
Risk return trade-off
Secondary markets
3. 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
Iinvestors choose precious metals
Characteristics of corporate bonds
Obtaining money to inves
Mutual fund
4. Investing in something that could have a risk of a world wide issue
Advantages of bonds
Asset allocation
Treasury bonds
Global investment risk
5. Illiquidity - declining property values - lack of diversification - long depreciation period - management problems - syndicate investment is not a tax shelter
Disadvantage of real estate
Growth stock
Business failure risk
Asset allocation
6. A market that exists between companies and financial institutions that is used to raise equity capital for the companies
Convertible preferred stock
Equity capital
Primary markets
Other funds
7. A short term debt obligation backed by the U.S. government with a maternity of less than one year
Treasury bills
Investment Goals
Moderate risk
Features of real estate
8. The process of selecting investments with a higher risk in order to profit from an anticipated price movement
Blue chip
Speculative investment
Treasury bonds
Convertible preferred stock
9. A nationally recognized - well-established and financially sound company
Blue chip
Stop order
Other funds
Moderate risk
10. Medium amount of risk is involved
Income stock
Moderate risk
Why investors purchase corporate bonds
Aggressive risk
11. A stock that rises quickly when economic growth is strong and falls rapidly when growth is slowing down
Why investors purchase common stock
Moderate risk
Cyclical stock
Primary markets
12. The uncertainty over the future real value (after inflation) of your investment
Secondary markets
Inflation risk
Disadvantages of bonds
Why corp issue common stock
13. By make a risky investment you can be returned with a lot of money or losing some
Advantages of stocks
Market order
Characteristics of a mutual fund
Risk return trade-off
14. Initial public offerings - investment banks
Types of bonds
Blue chip
Stock funds
Primary markets
15. 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
Bond funds
Treasury bills
Diversification
Why investors purchase mutual funds
16. An order to buy or sell a security when it's price surpasses a certain point
Treasury bonds
Characteristics of corporate bonds
Stop order
Google Fimamce
17. 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
Disadvantages of bonds
Corporate bond
Stock funds
Bond laddering
18. A lot of risk is involved
Market risk systematic
Aggressive risk
Google Fimamce
Classification of real estate investments
19. An equity security that pays regular often steadily increases dividends and offers a high yield that may generate the majority of overall returns
Disadvantages of bonds
Your role in the investment process
Cyclical stock
Income stock
20. A portfolio management strategy and model for investing in fixed income that involves purchasing multiple bonds - each with different maturity dates
Moderate risk
Bond laddering
Why investors purchase mutual funds
Characteristics of a mutual fund
21. Corporate earnings - earnings per share - price earnings rato (PE) - dividend payout - dividend yield - total return - beta - market to book ratio
Numerical measures for stocks
Short term techniques
Growth stock
Secondary markets
22. Balance your budget including an account for investments - pay off credit cards - start an emergency fund - have access to other cash for emergencies
Financial check up
Characteristics of a mutual fund
Why investors purchase mutual funds
Stock funds
23. A marketable U.S. government debt security with a fixed interest rate and a maturity between one and 10 years
Treasury notes
Diversification
Cumulative stock
Primary markets
24. 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
Treasury bonds
Numerical measures for stocks
Why corp issue common stock
Investment Goals
25. 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)
Treasury bills
Characteristics of a mutual fund
Corporate bond
Disadvantages of stocks
26. 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
Convertible preferred stock
Short term techniques
Limit order
27. Asset allocation funds - balanced funds - value funds - money market funds - life cycle funds - funds of funds
Aggressive risk
Cumulative stock
Other funds
Bond laddering
28. The risk that an investments value will change due to the change due to the change in the absolute level of interest rates
Diversification
Treasury bonds
Interest rate risk
Why investors purchase common stock
29. Fundamental analysis - technical analysis - efficient market theory
Bond laddering
Asset allocation
Investment theories
Disadvantages of stocks
30. 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
Types of bonds
Growth stock
Iinvestors choose precious metals
Cumulative stock
31. Interest rate risk - face value volatility - no hedge against inflation - principal does not appreciate - difficult to compound
Moderate risk
Disadvantages of bonds
Features of real estate
Long term techniques
32. Stocks Day trading - margin buying - selling short - option trading
Income stock
Why investors purchase corporate bonds
Short term techniques
Why corp issue common stock
33. Written promise to pay with legal conditions (indenture) - face value - maturity date - interest rate=coupon rate - trustee
Bond laddering
Characteristics of corporate bonds
Cumulative stock
Why corp issue common stock
34. An investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goal
Numerical measures for stocks
Asset allocation
Defensive stock
Treasury bonds
35. A marketable fixed interest U.S. government debt security with a maturity of more than 10 years
Bond funds
Government bond
Treasury bonds
Advantages of bonds
36. 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
Treasury bonds
Primary markets
Advantages of bonds
Features of real estate
37. Evaluate potential investments - seek assistance if needed - monitor the value of investments - keep accurate and current records - consider tax consequences of selling
Convertible preferred stock
Characteristics of corporate bonds
Your role in the investment process
Treasury bills
38. 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
Stop order
Characteristics of a mutual fund
Equity capital
39. Income from dividends - potential stock split - appreciation of stock value
Investment Goals
Cyclical stock
Characteristics of a mutual fund
Why investors purchase common stock
40. Diversification - affordability - professional management - liquidity - low transaction costs - no disadvantages
Classification of real estate investments
Long term techniques
Advantages of mutual funds
Bond laddering
41. An order placed with a brokerage to buy or sell a set number of shares at a specific price or better
Advantages of bonds
Limit order
Obtaining money to inves
Defensive stock
42. A stock that provides a constant dividend and stable earnings regardless of the state of the overall stock market
Diversification
Bond funds
Defensive stock
Market risk systematic
43. Cash dividends - price appearance - hedge against inflation - low minimum investment - limited liability - liquidity
Stop order
Market risk systematic
Global investment risk
Advantages of stocks
44. 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
Provisions for repayment
Government bond
Global investment risk
Market order
45. Shares in a company whose earnings are expected to grow at an above average rate relative to the market
Blue chip
Long term techniques
Growth stock
Treasury notes
46. Debenture bond - mortage bond - subordinated debenture bond - convertible bond - high yield bond
Why investors purchase corporate bonds
Market risk systematic
Types of bonds
Advantages of stocks
47. Direct: primary and secondary residences - commercial property - undeveloped land - foreclosures - Indirect: real estate syndicates - limited partnerships - real estate investment trusts - mortgages - participation certificates
Classification of real estate investments
Cyclical stock
Treasury bills
Characteristics of a mutual fund
48. Stocks buy& hold - dollar cost averaging - direct investment and DRIPS
Blue chip
Convertible preferred stock
Liquidity
Long term techniques
49. Company could fail - market volatility - uncertain yield - management time required - risk
Market risk systematic
Disadvantages of stocks
Secondary markets
Treasury bonds
50. 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
Why investors purchase common stock
Provisions for repayment
Speculative investment