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. Not much risk is involved






2. Call feature - sinking fund - serial redemption






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






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






5. 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






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






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






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






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






10. 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






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






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






14. 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






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






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






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






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






19. A lot of risk is involved






20. 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






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






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






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






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






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






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






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






28. Medium amount of risk is involved






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






30. Fundamental analysis - technical analysis - efficient market theory






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






32. 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






33. Online research about listed companies






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






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






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






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






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






39. Initial public offerings - investment banks






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






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






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






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






44. Securities exchanges - over the counter market






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






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






47. 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






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






49. 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






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