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






2. Online research about listed companies






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






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






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






6. Initial public offerings - investment banks






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






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






9. Call feature - sinking fund - serial redemption






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






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






12. 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






13. 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






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






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






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






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






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






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






20. 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






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






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






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






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






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






26. 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






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






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






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






30. 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






31. Medium amount of risk is involved






32. 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






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






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






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






36. Not much risk is involved






37. Fundamental analysis - technical analysis - efficient market theory






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






39. 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)






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






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






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






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






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






45. 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






46. A lot of risk is involved






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






48. 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






49. Securities exchanges - over the counter market






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