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. Securities exchanges - over the counter market






2. Call feature - sinking fund - serial redemption






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






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






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






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






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






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






9. Diversification - affordability - professional management - liquidity - low transaction costs - no disadvantages






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






11. 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






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






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






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






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






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






17. 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






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






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






20. 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






21. 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






22. A lot of risk is involved






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






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






25. 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






26. Online research about listed companies






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






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






29. 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






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






31. 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






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






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






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






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






36. 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






37. Initial public offerings - investment banks






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






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






40. Fundamental analysis - technical analysis - efficient market theory






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






42. Medium amount of risk is involved






43. 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)






44. Primary residence: you hold legal title - place to live - mortage interest is tax deductible - usually an inflation hedge - beware of housing bubbles






45. Stocks buy& hold - dollar cost averaging - direct investment and DRIPS






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






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






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






49. 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






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