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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. Balance your budget including an account for investments - pay off credit cards - start an emergency fund - have access to other cash for emergencies
Asset allocation
Financial check up
Advantages of mutual funds
Disadvantages of stocks
2. Initial public offerings - investment banks
Speculative investment
Stock funds
Asset allocation
Primary markets
3. The risk inherent to the entire market or entire market segment unsystematic: company or industry specific risk that is inherent in each investment
Global investment risk
Market risk systematic
Your role in the investment process
Iinvestors choose precious metals
4. A lot of risk is involved
Aggressive risk
Corporate bond
Market order
Advantages of bonds
5. Corporate earnings - earnings per share - price earnings rato (PE) - dividend payout - dividend yield - total return - beta - market to book ratio
Numerical measures for stocks
Advantages of real estate
Interest rate risk
Disadvantage of real estate
6. A portfolio management strategy and model for investing in fixed income that involves purchasing multiple bonds - each with different maturity dates
Advantages of real estate
Bond laddering
Classification of real estate investments
Stock funds
7. An investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goal
Asset allocation
Disadvantages of stocks
Moderate risk
Corporate bond
8. Stocks Day trading - margin buying - selling short - option trading
Stock funds
Short term techniques
Convertible preferred stock
Diversification
9. A risk management technique that mixes a wide variety of invests within a portfolio
Obtaining money to inves
Corporate bond
Speculative investment
Diversification
10. A nationally recognized - well-established and financially sound company
Equity capital
Business failure risk
Iinvestors choose precious metals
Blue chip
11. 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
Iinvestors choose precious metals
Why corp issue common stock
Cyclical stock
Secondary markets
12. 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
Iinvestors choose precious metals
Bond funds
Cumulative stock
Defensive stock
13. Shares in a company whose earnings are expected to grow at an above average rate relative to the market
Stop order
Growth stock
Your role in the investment process
Investment theories
14. Asset allocation funds - balanced funds - value funds - money market funds - life cycle funds - funds of funds
Limit order
Long term techniques
Corporate bond
Other funds
15. Online research about listed companies
Mutual fund
Google Fimamce
Corporate bond
Growth stock
16. 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
Short term techniques
Risk return trade-off
Characteristics of corporate bonds
Why investors purchase corporate bonds
17. 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
Disadvantages of stocks
Disadvantage of real estate
Convertible preferred stock
Iinvestors choose precious metals
18. A market that exists between companies and financial institutions that is used to raise equity capital for the companies
Investment theories
Cyclical stock
Investment Goals
Equity capital
19. Investing in something that could have a risk of a world wide issue
Defensive stock
Long term techniques
Advantages of stocks
Global investment risk
20. A debt security issued by a corporation and sold to investors - higher risk higher risk and government bond
Corporate bond
Diversification
Bond laddering
Short term techniques
21. Income from dividends - potential stock split - appreciation of stock value
Why investors purchase common stock
Primary markets
Why investors purchase mutual funds
Liquidity
22. Direct: primary and secondary residences - commercial property - undeveloped land - foreclosures - Indirect: real estate syndicates - limited partnerships - real estate investment trusts - mortgages - participation certificates
Defensive stock
Disadvantages of stocks
Mutual fund
Classification of real estate investments
23. 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
Diversification
Advantages of bonds
Provisions for repayment
Advantages of stocks
24. Fundamental analysis - technical analysis - efficient market theory
Advantages of real estate
Moderate risk
Advantages of stocks
Investment theories
25. An order to buy or sell a security when it's price surpasses a certain point
Why investors purchase common stock
Short term techniques
Market order
Stop order
26. A marketable U.S. government debt security with a fixed interest rate and a maturity between one and 10 years
Treasury notes
Disadvantage of real estate
Bond laddering
Bond funds
27. Call feature - sinking fund - serial redemption
Primary markets
Why investors purchase common stock
Provisions for repayment
Features of real estate
28. 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
Google Fimamce
Advantages of real estate
Why corp issue common stock
Provisions for repayment
29. 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
Global investment risk
Bond laddering
Cumulative stock
Why investors purchase common stock
30. Evaluate potential investments - seek assistance if needed - monitor the value of investments - keep accurate and current records - consider tax consequences of selling
Global investment risk
Characteristics of a mutual fund
Your role in the investment process
Cyclical stock
31. 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
Blue chip
Investment theories
Mutual fund
Business failure risk
32. A stock that provides a constant dividend and stable earnings regardless of the state of the overall stock market
Income stock
Investment Goals
Defensive stock
Disadvantages of stocks
33. Primary residence: you hold legal title - place to live - mortage interest is tax deductible - usually an inflation hedge - beware of housing bubbles
Why investors purchase corporate bonds
Treasury bonds
Blue chip
Features of real estate
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
Risk return trade-off
Obtaining money to inves
Other funds
Stock funds
35. A short term debt obligation backed by the U.S. government with a maternity of less than one year
Treasury bills
Other funds
Advantages of bonds
Blue chip
36. 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
Disadvantages of bonds
Market order
Advantages of stocks
Moderate risk
37. A marketable fixed interest U.S. government debt security with a maturity of more than 10 years
Why investors purchase mutual funds
Characteristics of a mutual fund
Treasury bonds
Stock funds
38. Combines funds of investors and invests those monies in a diversified portfolio of securities issued by corporations or governments that meet the fund objective
Why investors purchase mutual funds
Interest rate risk
Convertible preferred stock
Short term techniques
39. 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
Investment Goals
Diversification
Risk return trade-off
Iinvestors choose precious metals
40. Cash dividends - price appearance - hedge against inflation - low minimum investment - limited liability - liquidity
Characteristics of a mutual fund
Advantages of stocks
Global investment risk
Advantages of bonds
41. Stocks buy& hold - dollar cost averaging - direct investment and DRIPS
Limit order
Treasury notes
Secondary markets
Long term techniques
42. Written promise to pay with legal conditions (indenture) - face value - maturity date - interest rate=coupon rate - trustee
Bond laddering
Conservative risk
Characteristics of corporate bonds
Moderate risk
43. Debenture bond - mortage bond - subordinated debenture bond - convertible bond - high yield bond
Corporate bond
Speculative investment
Features of real estate
Types of bonds
44. Securities exchanges - over the counter market
Financial check up
Treasury bills
Inflation risk
Secondary markets
45. The uncertainty over the future real value (after inflation) of your investment
Government bond
Inflation risk
Treasury bonds
Your role in the investment process
46. Medium amount of risk is involved
Types of bonds
Treasury bonds
Moderate risk
Market risk systematic
47. Interest rate risk - face value volatility - no hedge against inflation - principal does not appreciate - difficult to compound
Numerical measures for stocks
Characteristics of corporate bonds
Disadvantages of bonds
Cyclical stock
48. A stock that rises quickly when economic growth is strong and falls rapidly when growth is slowing down
Income stock
Treasury bonds
Cyclical stock
Disadvantage of real estate
49. The process of selecting investments with a higher risk in order to profit from an anticipated price movement
Short term techniques
Why investors purchase mutual funds
Speculative investment
Income stock
50. 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
Disadvantage of real estate
Advantages of stocks
Disadvantages of bonds