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






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






3. Securities exchanges - over the counter market






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






5. Fundamental analysis - technical analysis - efficient market theory






6. 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






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






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






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






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






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






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






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






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






16. 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






17. A lot of risk is involved






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






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






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






21. 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






22. 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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






37. Initial public offerings - investment banks






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






39. Medium amount of risk is involved






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






41. 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






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






43. Not much risk is involved






44. 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






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






46. Call feature - sinking fund - serial redemption






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






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






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






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