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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. An order to buy or sell a security when it's price surpasses a certain point
Iinvestors choose precious metals
Stop order
Growth stock
Inflation risk
2. 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
Numerical measures for stocks
Iinvestors choose precious metals
Asset allocation
3. The uncertainty over the future real value (after inflation) of your investment
Corporate bond
Inflation risk
Google Fimamce
Advantages of bonds
4. 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
Why investors purchase common stock
Why investors purchase corporate bonds
Characteristics of corporate bonds
Advantages of real estate
5. 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
Equity capital
Advantages of bonds
Convertible preferred stock
Mutual fund
6. By make a risky investment you can be returned with a lot of money or losing some
Treasury bills
Investment theories
Bond laddering
Risk return trade-off
7. A debt security issued by a government spending most often issued in the country's domestic currency
Liquidity
Government bond
Other funds
Disadvantage of real estate
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
Advantages of bonds
Mutual fund
Global investment risk
Treasury notes
9. An order placed with a brokerage to buy or sell a set number of shares at a specific price or better
Growth stock
Limit order
Investment Goals
Market risk systematic
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
Market order
Bond funds
Growth stock
Investment theories
11. Interest rate risk - face value volatility - no hedge against inflation - principal does not appreciate - difficult to compound
Disadvantages of bonds
Treasury bonds
Primary markets
Disadvantage of real estate
12. A debt security issued by a corporation and sold to investors - higher risk higher risk and government bond
Financial check up
Characteristics of a mutual fund
Blue chip
Corporate bond
13. Online research about listed companies
Income stock
Speculative investment
Advantages of stocks
Google Fimamce
14. Company could fail - market volatility - uncertain yield - management time required - risk
Risk return trade-off
Stop order
Disadvantages of stocks
Advantages of mutual funds
15. Cash dividends - price appearance - hedge against inflation - low minimum investment - limited liability - liquidity
Short term techniques
Advantages of stocks
Global investment risk
Limit order
16. A risk management technique that mixes a wide variety of invests within a portfolio
Diversification
Treasury notes
Limit order
Defensive stock
17. Illiquidity - declining property values - lack of diversification - long depreciation period - management problems - syndicate investment is not a tax shelter
Disadvantage of real estate
Investment theories
Corporate bond
Government bond
18. A stock that rises quickly when economic growth is strong and falls rapidly when growth is slowing down
Cyclical stock
Diversification
Primary markets
Disadvantages of stocks
19. Stocks Day trading - margin buying - selling short - option trading
Conservative risk
Short term techniques
Global investment risk
Iinvestors choose precious metals
20. A stock that provides a constant dividend and stable earnings regardless of the state of the overall stock market
Stop order
Corporate bond
Numerical measures for stocks
Defensive stock
21. The process of selecting investments with a higher risk in order to profit from an anticipated price movement
Stock funds
Speculative investment
Advantages of bonds
Google Fimamce
22. Written promise to pay with legal conditions (indenture) - face value - maturity date - interest rate=coupon rate - trustee
Disadvantages of bonds
Investment theories
Long term techniques
Characteristics of corporate bonds
23. A marketable fixed interest U.S. government debt security with a maturity of more than 10 years
Treasury bonds
Treasury bills
Your role in the investment process
Google Fimamce
24. A nationally recognized - well-established and financially sound company
Stop order
Why investors purchase mutual funds
Bond laddering
Blue chip
25. 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
Aggressive risk
Investment Goals
Defensive stock
Equity capital
26. Investing in something that could have a risk of a world wide issue
Global investment risk
Market risk systematic
Asset allocation
Advantages of real estate
27. 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)
Characteristics of a mutual fund
Characteristics of corporate bonds
Defensive stock
Diversification
28. Initial public offerings - investment banks
Obtaining money to inves
Primary markets
Secondary markets
Market order
29. Combines funds of investors and invests those monies in a diversified portfolio of securities issued by corporations or governments that meet the fund objective
Risk return trade-off
Disadvantage of real estate
Treasury bonds
Why investors purchase mutual funds
30. 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
Other funds
Google Fimamce
Stock funds
Why investors purchase corporate bonds
31. Call feature - sinking fund - serial redemption
Provisions for repayment
Interest rate risk
Conservative risk
Aggressive risk
32. Fundamental analysis - technical analysis - efficient market theory
Growth stock
Liquidity
Investment theories
Characteristics of a mutual fund
33. Not much risk is involved
Other funds
Disadvantages of bonds
Conservative risk
Equity capital
34. An investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goal
Government bond
Disadvantages of bonds
Asset allocation
Why corp issue common stock
35. Income from dividends - potential stock split - appreciation of stock value
Treasury bonds
Why investors purchase common stock
Why investors purchase corporate bonds
Investment theories
36. Shares in a company whose earnings are expected to grow at an above average rate relative to the market
Growth stock
Aggressive risk
Conservative risk
Equity capital
37. A short term debt obligation backed by the U.S. government with a maternity of less than one year
Conservative risk
Treasury bills
Defensive stock
Speculative investment
38. Direct: primary and secondary residences - commercial property - undeveloped land - foreclosures - Indirect: real estate syndicates - limited partnerships - real estate investment trusts - mortgages - participation certificates
Classification of real estate investments
Inflation risk
Advantages of bonds
Mutual fund
39. Securities exchanges - over the counter market
Moderate risk
Secondary markets
Diversification
Income stock
40. A market that exists between companies and financial institutions that is used to raise equity capital for the companies
Equity capital
Inflation risk
Features of real estate
Cyclical stock
41. 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
Investment theories
Market risk systematic
Market order
Other funds
42. Corporate earnings - earnings per share - price earnings rato (PE) - dividend payout - dividend yield - total return - beta - market to book ratio
Market risk systematic
Types of bonds
Speculative investment
Numerical measures for stocks
43. Diversification - affordability - professional management - liquidity - low transaction costs - no disadvantages
Disadvantages of bonds
Advantages of mutual funds
Your role in the investment process
Moderate risk
44. Medium amount of risk is involved
Growth stock
Cyclical stock
Moderate risk
Defensive stock
45. 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
Asset allocation
Characteristics of corporate bonds
Aggressive risk
46. 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
Why corp issue common stock
Stock funds
Provisions for repayment
Types of bonds
47. Stocks buy& hold - dollar cost averaging - direct investment and DRIPS
Risk return trade-off
Long term techniques
Iinvestors choose precious metals
Financial check up
48. The degree to which an asset or security can be bought or sold in the market without affecting the asset's price
Limit order
Other funds
Business failure risk
Liquidity
49. 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
Treasury notes
Numerical measures for stocks
Cumulative stock
Limit order
50. Primary residence: you hold legal title - place to live - mortage interest is tax deductible - usually an inflation hedge - beware of housing bubbles
Cyclical stock
Features of real estate
Classification of real estate investments
Stock funds