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Test your basic knowledge |
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. A market that exists between companies and financial institutions that is used to raise equity capital for the companies
Business failure risk
Bond laddering
Disadvantages of bonds
Equity capital
2. Company could fail - market volatility - uncertain yield - management time required - risk
Treasury bills
Disadvantages of stocks
Liquidity
Cumulative stock
3. An order to buy or sell a security when it's price surpasses a certain point
Disadvantages of bonds
Investment Goals
Advantages of stocks
Stop order
4. The degree to which an asset or security can be bought or sold in the market without affecting the asset's price
Inflation risk
Liquidity
Disadvantage of real estate
Advantages of bonds
5. 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
Limit order
Advantages of bonds
Investment Goals
Your role in the investment process
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
Types of bonds
Bond funds
Numerical measures for stocks
Diversification
7. The risk inherent to the entire market or entire market segment unsystematic: company or industry specific risk that is inherent in each investment
Speculative investment
Why investors purchase corporate bonds
Market risk systematic
Bond laddering
8. 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
Blue chip
Market order
Cumulative stock
Income stock
9. Income from dividends - potential stock split - appreciation of stock value
Types of bonds
Why investors purchase common stock
Advantages of mutual funds
Aggressive risk
10. A short term debt obligation backed by the U.S. government with a maternity of less than one year
Other funds
Income stock
Treasury bills
Provisions for repayment
11. Corporate earnings - earnings per share - price earnings rato (PE) - dividend payout - dividend yield - total return - beta - market to book ratio
Why corp issue common stock
Disadvantage of real estate
Numerical measures for stocks
Blue chip
12. Illiquidity - declining property values - lack of diversification - long depreciation period - management problems - syndicate investment is not a tax shelter
Stop order
Features of real estate
Disadvantage of real estate
Financial check up
13. Call feature - sinking fund - serial redemption
Why corp issue common stock
Why investors purchase mutual funds
Provisions for repayment
Bond funds
14. The process of selecting investments with a higher risk in order to profit from an anticipated price movement
Provisions for repayment
Treasury notes
Asset allocation
Speculative investment
15. 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
Advantages of mutual funds
Income stock
Mutual fund
Corporate bond
16. Stocks buy& hold - dollar cost averaging - direct investment and DRIPS
Risk return trade-off
Long term techniques
Treasury bills
Investment Goals
17. Not much risk is involved
Conservative risk
Disadvantage of real estate
Growth stock
Limit order
18. Investing stock in a company and having the risk that it will shut down
Moderate risk
Advantages of bonds
Business failure risk
Diversification
19. Initial public offerings - investment banks
Secondary markets
Iinvestors choose precious metals
Blue chip
Primary markets
20. A marketable U.S. government debt security with a fixed interest rate and a maturity between one and 10 years
Disadvantage of real estate
Advantages of mutual funds
Inflation risk
Treasury notes
21. A risk management technique that mixes a wide variety of invests within a portfolio
Convertible preferred stock
Liquidity
Diversification
Government bond
22. Fundamental analysis - technical analysis - efficient market theory
Your role in the investment process
Limit order
Investment theories
Stop order
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)
Income stock
Why investors purchase corporate bonds
Characteristics of a mutual fund
Growth stock
24. A stock that provides a constant dividend and stable earnings regardless of the state of the overall stock market
Market order
Defensive stock
Limit order
Convertible preferred stock
25. Interest rate risk - face value volatility - no hedge against inflation - principal does not appreciate - difficult to compound
Aggressive risk
Disadvantages of stocks
Short term techniques
Disadvantages of bonds
26. Stocks Day trading - margin buying - selling short - option trading
Short term techniques
Convertible preferred stock
Google Fimamce
Diversification
27. Investing in something that could have a risk of a world wide issue
Global investment risk
Asset allocation
Convertible preferred stock
Stock funds
28. Cash dividends - price appearance - hedge against inflation - low minimum investment - limited liability - liquidity
Disadvantages of bonds
Financial check up
Corporate bond
Advantages of stocks
29. Evaluate potential investments - seek assistance if needed - monitor the value of investments - keep accurate and current records - consider tax consequences of selling
Iinvestors choose precious metals
Your role in the investment process
Long term techniques
Blue chip
30. A nationally recognized - well-established and financially sound company
Blue chip
Secondary markets
Classification of real estate investments
Bond laddering
31. 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
Types of bonds
Investment Goals
Advantages of bonds
Iinvestors choose precious metals
32. Asset allocation funds - balanced funds - value funds - money market funds - life cycle funds - funds of funds
Advantages of real estate
Equity capital
Stock funds
Other funds
33. Written promise to pay with legal conditions (indenture) - face value - maturity date - interest rate=coupon rate - trustee
Characteristics of corporate bonds
Moderate risk
Treasury notes
Income stock
34. An equity security that pays regular often steadily increases dividends and offers a high yield that may generate the majority of overall returns
Provisions for repayment
Bond laddering
Income stock
Government bond
35. Primary residence: you hold legal title - place to live - mortage interest is tax deductible - usually an inflation hedge - beware of housing bubbles
Provisions for repayment
Features of real estate
Bond laddering
Financial check up
36. Online research about listed companies
Other funds
Government bond
Why investors purchase mutual funds
Google Fimamce
37. By make a risky investment you can be returned with a lot of money or losing some
Provisions for repayment
Risk return trade-off
Inflation risk
Moderate risk
38. 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
Provisions for repayment
Convertible preferred stock
Characteristics of corporate bonds
Why corp issue common stock
39. 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
Obtaining money to inves
Advantages of stocks
Bond laddering
Classification of real estate investments
40. Securities exchanges - over the counter market
Secondary markets
Disadvantages of stocks
Why investors purchase corporate bonds
Treasury bonds
41. Diversification - affordability - professional management - liquidity - low transaction costs - no disadvantages
Advantages of mutual funds
Growth stock
Primary markets
Cyclical stock
42. A debt security issued by a government spending most often issued in the country's domestic currency
Limit order
Iinvestors choose precious metals
Government bond
Blue chip
43. An investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goal
Global investment risk
Short term techniques
Asset allocation
Advantages of stocks
44. Direct: primary and secondary residences - commercial property - undeveloped land - foreclosures - Indirect: real estate syndicates - limited partnerships - real estate investment trusts - mortgages - participation certificates
Treasury bills
Classification of real estate investments
Limit order
Market risk systematic
45. A debt security issued by a corporation and sold to investors - higher risk higher risk and government bond
Defensive stock
Market order
Equity capital
Corporate bond
46. 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
Obtaining money to inves
Why corp issue common stock
Diversification
Google Fimamce
47. Medium amount of risk is involved
Treasury bonds
Moderate risk
Secondary markets
Disadvantages of bonds
48. The uncertainty over the future real value (after inflation) of your investment
Aggressive risk
Inflation risk
Advantages of bonds
Global investment risk
49. 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
Aggressive risk
Market order
Obtaining money to inves
50. A lot of risk is involved
Equity capital
Why corp issue common stock
Obtaining money to inves
Aggressive risk