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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. Interest rate risk - face value volatility - no hedge against inflation - principal does not appreciate - difficult to compound
Short term techniques
Disadvantages of bonds
Characteristics of corporate bonds
Market risk systematic
2. Medium amount of risk is involved
Characteristics of a mutual fund
Market order
Moderate risk
Disadvantages of stocks
3. 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
Asset allocation
Investment Goals
Moderate risk
Advantages of real estate
4. Balance your budget including an account for investments - pay off credit cards - start an emergency fund - have access to other cash for emergencies
Characteristics of a mutual fund
Cyclical stock
Financial check up
Growth stock
5. A stock that provides a constant dividend and stable earnings regardless of the state of the overall stock market
Primary markets
Advantages of real estate
Other funds
Defensive stock
6. 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
Numerical measures for stocks
Stop order
Obtaining money to inves
Cumulative stock
7. Debenture bond - mortage bond - subordinated debenture bond - convertible bond - high yield bond
Treasury bonds
Moderate risk
Types of bonds
Bond funds
8. A marketable fixed interest U.S. government debt security with a maturity of more than 10 years
Corporate bond
Global investment risk
Treasury bonds
Advantages of mutual funds
9. 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
Advantages of bonds
Cyclical stock
Market order
Asset allocation
10. Stocks buy& hold - dollar cost averaging - direct investment and DRIPS
Other funds
Google Fimamce
Secondary markets
Long term techniques
11. 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
Features of real estate
Other funds
Cumulative stock
Numerical measures for stocks
12. The uncertainty over the future real value (after inflation) of your investment
Limit order
Defensive stock
Why corp issue common stock
Inflation risk
13. Direct: primary and secondary residences - commercial property - undeveloped land - foreclosures - Indirect: real estate syndicates - limited partnerships - real estate investment trusts - mortgages - participation certificates
Global investment risk
Classification of real estate investments
Disadvantage of real estate
Provisions for repayment
14. Cash dividends - price appearance - hedge against inflation - low minimum investment - limited liability - liquidity
Global investment risk
Investment theories
Advantages of stocks
Characteristics of corporate bonds
15. Not much risk is involved
Asset allocation
Conservative risk
Advantages of bonds
Investment theories
16. Online research about listed companies
Speculative investment
Liquidity
Disadvantage of real estate
Google Fimamce
17. A market that exists between companies and financial institutions that is used to raise equity capital for the companies
Conservative risk
Equity capital
Corporate bond
Speculative investment
18. Securities exchanges - over the counter market
Investment theories
Secondary markets
Liquidity
Asset allocation
19. A debt security issued by a corporation and sold to investors - higher risk higher risk and government bond
Iinvestors choose precious metals
Corporate bond
Limit order
Features of real estate
20. An order to buy or sell a security when it's price surpasses a certain point
Stop order
Bond funds
Disadvantages of bonds
Why investors purchase common stock
21. Combines funds of investors and invests those monies in a diversified portfolio of securities issued by corporations or governments that meet the fund objective
Liquidity
Market order
Blue chip
Why investors purchase mutual funds
22. A risk management technique that mixes a wide variety of invests within a portfolio
Asset allocation
Stock funds
Diversification
Cyclical stock
23. 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
Aggressive risk
Other funds
Cyclical stock
24. Investing in something that could have a risk of a world wide issue
Aggressive risk
Speculative investment
Global investment risk
Moderate risk
25. A lot of risk is involved
Advantages of stocks
Why investors purchase common stock
Aggressive risk
Corporate bond
26. 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
Market order
Conservative risk
Long term techniques
Why investors purchase corporate bonds
27. Fundamental analysis - technical analysis - efficient market theory
Features of real estate
Iinvestors choose precious metals
Classification of real estate investments
Investment theories
28. The risk inherent to the entire market or entire market segment unsystematic: company or industry specific risk that is inherent in each investment
Corporate bond
Disadvantage of real estate
Your role in the investment process
Market risk systematic
29. A portfolio management strategy and model for investing in fixed income that involves purchasing multiple bonds - each with different maturity dates
Global investment risk
Characteristics of a mutual fund
Bond laddering
Other funds
30. 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
Long term techniques
Provisions for repayment
Stop order
31. The risk that an investments value will change due to the change due to the change in the absolute level of interest rates
Advantages of real estate
Global investment risk
Interest rate risk
Government bond
32. A nationally recognized - well-established and financially sound company
Bond funds
Blue chip
Iinvestors choose precious metals
Government bond
33. Diversification - affordability - professional management - liquidity - low transaction costs - no disadvantages
Treasury bills
Disadvantages of stocks
Advantages of mutual funds
Market risk systematic
34. Initial public offerings - investment banks
Stock funds
Google Fimamce
Primary markets
Business failure risk
35. Stocks Day trading - margin buying - selling short - option trading
Long term techniques
Convertible preferred stock
Risk return trade-off
Short term techniques
36. An investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goal
Corporate bond
Asset allocation
Treasury notes
Equity capital
37. Call feature - sinking fund - serial redemption
Features of real estate
Defensive stock
Provisions for repayment
Investment Goals
38. An order placed with a brokerage to buy or sell a set number of shares at a specific price or better
Corporate bond
Investment Goals
Limit order
Treasury notes
39. Investing stock in a company and having the risk that it will shut down
Business failure risk
Defensive stock
Bond funds
Why investors purchase corporate bonds
40. The process of selecting investments with a higher risk in order to profit from an anticipated price movement
Inflation risk
Stock funds
Speculative investment
Limit order
41. Shares in a company whose earnings are expected to grow at an above average rate relative to the market
Growth stock
Interest rate risk
Business failure risk
Blue chip
42. Written promise to pay with legal conditions (indenture) - face value - maturity date - interest rate=coupon rate - trustee
Treasury bills
Bond laddering
Long term techniques
Characteristics of corporate bonds
43. Company could fail - market volatility - uncertain yield - management time required - risk
Stop order
Moderate risk
Disadvantages of stocks
Inflation risk
44. 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
Investment theories
Characteristics of a mutual fund
Stock funds
45. Income from dividends - potential stock split - appreciation of stock value
Why investors purchase common stock
Obtaining money to inves
Limit order
Moderate risk
46. Asset allocation funds - balanced funds - value funds - money market funds - life cycle funds - funds of funds
Mutual fund
Obtaining money to inves
Other funds
Why corp issue common stock
47. 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
Characteristics of a mutual fund
Market order
Stock funds
Blue chip
48. The degree to which an asset or security can be bought or sold in the market without affecting the asset's price
Liquidity
Disadvantage of real estate
Corporate bond
Market order
49. 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)
Stock funds
Characteristics of a mutual fund
Treasury notes
Growth stock
50. 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
Treasury notes
Provisions for repayment
Cyclical stock