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






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






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






4. A nationally recognized - well-established and financially sound company






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






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






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






8. Medium amount of risk is involved






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






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






11. 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






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






13. Online research about listed companies






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






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






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






17. Securities exchanges - over the counter market






18. 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






19. 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






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






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






22. Not much risk is involved






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






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






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






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






27. Initial public offerings - investment banks






28. Call feature - sinking fund - serial redemption






29. 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






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






31. Fundamental analysis - technical analysis - efficient market theory






32. 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






33. 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






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






35. Cash dividends - price appearance - hedge against inflation - low minimum investment - limited liability - liquidity






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






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






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






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






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






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






42. A lot of risk is involved






43. 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






44. 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






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






46. 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






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






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






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






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