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. Not much risk is involved






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






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






4. 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






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






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






7. 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






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






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






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






11. 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






12. 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






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






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






15. Online research about listed companies






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






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






18. Securities exchanges - over the counter market






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






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






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






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






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






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






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






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






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






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






29. Fundamental analysis - technical analysis - efficient market theory






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






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






32. Medium amount of risk is involved






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






34. 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






35. Call feature - sinking fund - serial redemption






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






37. 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






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






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






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






42. 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






43. 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






44. 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)






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






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






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






48. 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






49. 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






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







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