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






2. 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






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






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






5. 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






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






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






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






9. 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






10. Call feature - sinking fund - serial redemption






11. Fundamental analysis - technical analysis - efficient market theory






12. Not much risk is involved






13. 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






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






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






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






17. 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






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






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






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






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






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






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






24. A lot of risk is involved






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






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






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






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






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






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






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






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






33. 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






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






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






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






37. 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)






38. Online research about listed companies






39. 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






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






41. 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






42. 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






43. Initial public offerings - investment banks






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






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






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






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






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






49. Securities exchanges - over the counter market






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






Can you answer 50 questions in 15 minutes?



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