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. A lot of risk is involved






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






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






4. 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






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






6. 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






7. 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






8. 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






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






10. Online research about listed companies






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






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






13. Securities exchanges - over the counter market






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






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






16. 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






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






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






19. 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






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






21. Initial public offerings - investment banks






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






23. 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






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






25. 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






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






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






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






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






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






31. Medium amount of risk is involved






32. 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






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






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






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






36. 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






37. Call feature - sinking fund - serial redemption






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






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






40. 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






41. 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






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






43. 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)






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






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






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






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






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






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






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