SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
Search
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. 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
Speculative investment
Convertible preferred stock
Provisions for repayment
Primary markets
2. 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 bills
Iinvestors choose precious metals
Why corp issue common stock
Financial check up
3. A lot of risk is involved
Stop order
Short term techniques
Inflation risk
Aggressive risk
4. An order to buy or sell a security when it's price surpasses a certain point
Cumulative stock
Business failure risk
Other funds
Stop order
5. Asset allocation funds - balanced funds - value funds - money market funds - life cycle funds - funds of funds
Treasury notes
Features of real estate
Other funds
Speculative investment
6. 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
Why corp issue common stock
Bond laddering
Treasury bonds
7. A debt security issued by a corporation and sold to investors - higher risk higher risk and government bond
Mutual fund
Liquidity
Corporate bond
Investment Goals
8. An order placed with a brokerage to buy or sell a set number of shares at a specific price or better
Types of bonds
Limit order
Provisions for repayment
Market order
9. 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
Cumulative stock
Investment Goals
Primary markets
Income stock
10. 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
Aggressive risk
Characteristics of a mutual fund
Stop order
11. 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
Iinvestors choose precious metals
Liquidity
Risk return trade-off
Primary markets
12. Interest rate risk - face value volatility - no hedge against inflation - principal does not appreciate - difficult to compound
Asset allocation
Disadvantages of bonds
Cyclical stock
Disadvantage of real estate
13. Medium amount of risk is involved
Moderate risk
Disadvantages of stocks
Primary markets
Global investment risk
14. Fundamental analysis - technical analysis - efficient market theory
Diversification
Growth stock
Short term techniques
Investment theories
15. 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
Obtaining money to inves
Disadvantage of real estate
Aggressive risk
Investment Goals
16. A risk management technique that mixes a wide variety of invests within a portfolio
Stock funds
Asset allocation
Diversification
Interest rate risk
17. An equity security that pays regular often steadily increases dividends and offers a high yield that may generate the majority of overall returns
Market order
Inflation risk
Income stock
Disadvantages of stocks
18. Direct: primary and secondary residences - commercial property - undeveloped land - foreclosures - Indirect: real estate syndicates - limited partnerships - real estate investment trusts - mortgages - participation certificates
Why investors purchase common stock
Investment theories
Bond funds
Classification of real estate investments
19. Not much risk is involved
Stop order
Investment theories
Treasury bonds
Conservative risk
20. The risk inherent to the entire market or entire market segment unsystematic: company or industry specific risk that is inherent in each investment
Disadvantages of stocks
Diversification
Market risk systematic
Advantages of bonds
21. A portfolio management strategy and model for investing in fixed income that involves purchasing multiple bonds - each with different maturity dates
Bond laddering
Advantages of stocks
Features of real estate
Investment Goals
22. The degree to which an asset or security can be bought or sold in the market without affecting the asset's price
Characteristics of a mutual fund
Liquidity
Why investors purchase common stock
Google Fimamce
23. 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
Obtaining money to inves
Bond laddering
Mutual fund
Disadvantage of real estate
24. A stock that provides a constant dividend and stable earnings regardless of the state of the overall stock market
Defensive stock
Characteristics of corporate bonds
Google Fimamce
Secondary markets
25. Debenture bond - mortage bond - subordinated debenture bond - convertible bond - high yield bond
Obtaining money to inves
Advantages of mutual funds
Types of bonds
Cumulative stock
26. 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
Market risk systematic
Risk return trade-off
Why investors purchase common stock
Bond funds
27. Online research about listed companies
Bond funds
Google Fimamce
Inflation risk
Investment Goals
28. 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
Interest rate risk
Aggressive risk
Diversification
29. Illiquidity - declining property values - lack of diversification - long depreciation period - management problems - syndicate investment is not a tax shelter
Market risk systematic
Liquidity
Disadvantage of real estate
Provisions for repayment
30. By make a risky investment you can be returned with a lot of money or losing some
Speculative investment
Disadvantages of stocks
Risk return trade-off
Treasury bonds
31. A market that exists between companies and financial institutions that is used to raise equity capital for the companies
Equity capital
Government bond
Treasury bonds
Aggressive risk
32. Call feature - sinking fund - serial redemption
Provisions for repayment
Moderate risk
Iinvestors choose precious metals
Liquidity
33. 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
Your role in the investment process
Mutual fund
Disadvantages of bonds
34. 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
Why investors purchase corporate bonds
Stock funds
Liquidity
Advantages of real estate
35. 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
Obtaining money to inves
Mutual fund
Short term techniques
Corporate bond
36. Company could fail - market volatility - uncertain yield - management time required - risk
Convertible preferred stock
Equity capital
Treasury bonds
Disadvantages of stocks
37. Investing in something that could have a risk of a world wide issue
Global investment risk
Classification of real estate investments
Investment theories
Income stock
38. Primary residence: you hold legal title - place to live - mortage interest is tax deductible - usually an inflation hedge - beware of housing bubbles
Market order
Numerical measures for stocks
Iinvestors choose precious metals
Features of real estate
39. The uncertainty over the future real value (after inflation) of your investment
Limit order
Conservative risk
Inflation risk
Why investors purchase common stock
40. Initial public offerings - investment banks
Primary markets
Global investment risk
Mutual fund
Secondary markets
41. Corporate earnings - earnings per share - price earnings rato (PE) - dividend payout - dividend yield - total return - beta - market to book ratio
Income stock
Diversification
Advantages of real estate
Numerical measures for stocks
42. A stock that rises quickly when economic growth is strong and falls rapidly when growth is slowing down
Disadvantages of bonds
Stop order
Blue chip
Cyclical stock
43. Stocks Day trading - margin buying - selling short - option trading
Short term techniques
Speculative investment
Your role in the investment process
Classification of real estate investments
44. A nationally recognized - well-established and financially sound company
Asset allocation
Features of real estate
Convertible preferred stock
Blue chip
45. 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
Advantages of mutual funds
Why investors purchase common stock
Investment theories
46. A short term debt obligation backed by the U.S. government with a maternity of less than one year
Government bond
Short term techniques
Treasury bills
Other funds
47. Cash dividends - price appearance - hedge against inflation - low minimum investment - limited liability - liquidity
Equity capital
Advantages of stocks
Inflation risk
Treasury bills
48. A debt security issued by a government spending most often issued in the country's domestic currency
Growth stock
Government bond
Why investors purchase common stock
Treasury bills
49. The process of selecting investments with a higher risk in order to profit from an anticipated price movement
Mutual fund
Speculative investment
Classification of real estate investments
Global investment risk
50. The risk that an investments value will change due to the change due to the change in the absolute level of interest rates
Asset allocation
Features of real estate
Disadvantages of bonds
Interest rate risk