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






2. Not much risk is involved






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






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






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






6. 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






7. 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






8. 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






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






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)






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






12. 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






13. Fundamental analysis - technical analysis - efficient market theory






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






15. 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






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






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






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






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






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






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






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






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






24. Medium amount of risk is involved






25. A lot of risk is involved






26. The degree to which an asset or security can be bought or sold in the market without affecting the asset's price






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






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






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






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






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






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






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






34. Call feature - sinking fund - serial redemption






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






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






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






38. 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






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






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






41. 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






42. Online research about listed companies






43. Securities exchanges - over the counter market






44. Initial public offerings - investment banks






45. 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






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






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






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






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






50. 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