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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. A debt security issued by a corporation and sold to investors - higher risk higher risk and government bond
Treasury bills
Financial check up
Diversification
Corporate bond
2. A lot of risk is involved
Aggressive risk
Your role in the investment process
Growth stock
Primary markets
3. A nationally recognized - well-established and financially sound company
Advantages of real estate
Asset allocation
Why investors purchase corporate bonds
Blue chip
4. A stock that rises quickly when economic growth is strong and falls rapidly when growth is slowing down
Advantages of mutual funds
Provisions for repayment
Cyclical stock
Disadvantage of real estate
5. The uncertainty over the future real value (after inflation) of your investment
Cumulative stock
Bond funds
Income stock
Inflation risk
6. 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
Treasury notes
Why investors purchase mutual funds
Why corp issue common stock
Other funds
7. Debenture bond - mortage bond - subordinated debenture bond - convertible bond - high yield bond
Market order
Types of bonds
Growth stock
Financial check up
8. Asset allocation funds - balanced funds - value funds - money market funds - life cycle funds - funds of funds
Provisions for repayment
Secondary markets
Bond funds
Other funds
9. Online research about listed companies
Market risk systematic
Short term techniques
Google Fimamce
Blue chip
10. The degree to which an asset or security can be bought or sold in the market without affecting the asset's price
Conservative risk
Market order
Liquidity
Disadvantage of real estate
11. Stocks buy& hold - dollar cost averaging - direct investment and DRIPS
Long term techniques
Growth stock
Financial check up
Treasury bonds
12. A short term debt obligation backed by the U.S. government with a maternity of less than one year
Treasury bills
Limit order
Liquidity
Short term techniques
13. Illiquidity - declining property values - lack of diversification - long depreciation period - management problems - syndicate investment is not a tax shelter
Disadvantage of real estate
Income stock
Convertible preferred stock
Stock funds
14. The risk that an investments value will change due to the change due to the change in the absolute level of interest rates
Interest rate risk
Cumulative stock
Treasury notes
Moderate risk
15. A stock that provides a constant dividend and stable earnings regardless of the state of the overall stock market
Disadvantages of bonds
Advantages of mutual funds
Defensive stock
Features of real estate
16. 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
Advantages of mutual funds
Bond funds
Blue chip
Aggressive risk
17. A market that exists between companies and financial institutions that is used to raise equity capital for the companies
Corporate bond
Equity capital
Cyclical stock
Bond funds
18. An order placed with a brokerage to buy or sell a set number of shares at a specific price or better
Treasury notes
Limit order
Short term techniques
Asset allocation
19. 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 mutual funds
Your role in the investment process
Limit order
Market order
20. 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
Moderate risk
Disadvantages of stocks
Income stock
Obtaining money to inves
21. Direct: primary and secondary residences - commercial property - undeveloped land - foreclosures - Indirect: real estate syndicates - limited partnerships - real estate investment trusts - mortgages - participation certificates
Limit order
Cyclical stock
Primary markets
Classification of real estate investments
22. A debt security issued by a government spending most often issued in the country's domestic currency
Characteristics of a mutual fund
Cyclical stock
Inflation risk
Government bond
23. 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
Provisions for repayment
Investment Goals
Disadvantages of stocks
Classification of real estate investments
24. Corporate earnings - earnings per share - price earnings rato (PE) - dividend payout - dividend yield - total return - beta - market to book ratio
Limit order
Numerical measures for stocks
Stop order
Bond funds
25. Evaluate potential investments - seek assistance if needed - monitor the value of investments - keep accurate and current records - consider tax consequences of selling
Treasury notes
Your role in the investment process
Google Fimamce
Bond funds
26. An order to buy or sell a security when it's price surpasses a certain point
Secondary markets
Stop order
Advantages of real estate
Risk return trade-off
27. A risk management technique that mixes a wide variety of invests within a portfolio
Diversification
Market risk systematic
Why corp issue common stock
Other funds
28. Fundamental analysis - technical analysis - efficient market theory
Types of bonds
Investment theories
Convertible preferred stock
Diversification
29. Securities exchanges - over the counter market
Characteristics of corporate bonds
Short term techniques
Long term techniques
Secondary markets
30. Income from dividends - potential stock split - appreciation of stock value
Why corp issue common stock
Diversification
Why investors purchase common stock
Stop order
31. By make a risky investment you can be returned with a lot of money or losing some
Asset allocation
Blue chip
Risk return trade-off
Classification of real estate investments
32. 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
Why investors purchase corporate bonds
Treasury bills
Risk return trade-off
Growth stock
33. 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
Characteristics of corporate bonds
Mutual fund
Primary markets
Investment theories
34. The risk inherent to the entire market or entire market segment unsystematic: company or industry specific risk that is inherent in each investment
Market risk systematic
Why investors purchase common stock
Treasury bills
Moderate risk
35. Medium amount of risk is involved
Diversification
Advantages of mutual funds
Moderate risk
Long term techniques
36. 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
Business failure risk
Income stock
Why investors purchase common stock
Advantages of bonds
37. Call feature - sinking fund - serial redemption
Inflation risk
Provisions for repayment
Treasury notes
Iinvestors choose precious metals
38. 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)
Iinvestors choose precious metals
Blue chip
Characteristics of a mutual fund
Market risk systematic
39. The process of selecting investments with a higher risk in order to profit from an anticipated price movement
Defensive stock
Numerical measures for stocks
Treasury notes
Speculative investment
40. An investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goal
Why investors purchase corporate bonds
Bond laddering
Characteristics of a mutual fund
Asset allocation
41. Investing stock in a company and having the risk that it will shut down
Risk return trade-off
Business failure risk
Characteristics of corporate bonds
Numerical measures for stocks
42. Company could fail - market volatility - uncertain yield - management time required - risk
Provisions for repayment
Business failure risk
Disadvantages of stocks
Global investment risk
43. A marketable fixed interest U.S. government debt security with a maturity of more than 10 years
Income stock
Treasury bonds
Features of real estate
Investment theories
44. Stocks Day trading - margin buying - selling short - option trading
Short term techniques
Treasury bills
Why investors purchase mutual funds
Disadvantages of stocks
45. 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
Business failure risk
Stop order
Advantages of mutual funds
46. 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
Disadvantages of stocks
Characteristics of a mutual fund
Convertible preferred stock
Treasury bills
47. A marketable U.S. government debt security with a fixed interest rate and a maturity between one and 10 years
Treasury notes
Types of bonds
Secondary markets
Cyclical stock
48. Cash dividends - price appearance - hedge against inflation - low minimum investment - limited liability - liquidity
Cumulative stock
Advantages of stocks
Market risk systematic
Characteristics of corporate bonds
49. 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
Blue chip
Disadvantages of bonds
Treasury bonds
50. A portfolio management strategy and model for investing in fixed income that involves purchasing multiple bonds - each with different maturity dates
Other funds
Disadvantages of stocks
Bond laddering
Advantages of stocks