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






2. 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






3. 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






4. 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






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






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






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






8. 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






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






11. Not much risk is involved






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






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






14. 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






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






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






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






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






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






20. 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






21. Call feature - sinking fund - serial redemption






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






23. 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)






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






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






26. 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






27. 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






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






29. 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






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






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






32. Medium amount of risk is involved






33. 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






34. Fundamental analysis - technical analysis - efficient market theory






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






36. Online research about listed companies






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






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






39. Securities exchanges - over the counter market






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






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






42. Initial public offerings - investment banks






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






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






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






46. 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






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






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






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






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







Sorry!:) No result found.

Can you answer 50 questions in 15 minutes?


Let me suggest you:

Browse all subjects

Browse all tests

Most popular tests



Major Subjects

Tests & Exams


AP
CLEP
DSST
GRE
SAT
GMAT

Browse all subjects

Browse all tests

Most popular tests