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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. Company could fail - market volatility - uncertain yield - management time required - risk
Types of bonds
Other funds
Disadvantages of stocks
Corporate bond
2. 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
Convertible preferred stock
Equity capital
Disadvantages of bonds
Advantages of mutual funds
3. 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
Bond laddering
Stock funds
Growth stock
Global investment risk
4. Investing stock in a company and having the risk that it will shut down
Bond funds
Business failure risk
Disadvantage of real estate
Corporate bond
5. A lot of risk is involved
Aggressive risk
Types of bonds
Convertible preferred stock
Classification of real estate investments
6. Medium amount of risk is involved
Advantages of stocks
Moderate risk
Why investors purchase corporate bonds
Corporate bond
7. Shares in a company whose earnings are expected to grow at an above average rate relative to the market
Growth stock
Investment theories
Primary markets
Numerical measures for stocks
8. 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
Disadvantages of bonds
Features of real estate
Why investors purchase corporate bonds
Mutual fund
9. Not much risk is involved
Primary markets
Classification of real estate investments
Google Fimamce
Conservative risk
10. Securities exchanges - over the counter market
Why investors purchase corporate bonds
Secondary markets
Diversification
Growth stock
11. By make a risky investment you can be returned with a lot of money or losing some
Risk return trade-off
Income stock
Moderate risk
Classification of real estate investments
12. Cash dividends - price appearance - hedge against inflation - low minimum investment - limited liability - liquidity
Advantages of stocks
Why investors purchase common stock
Moderate risk
Short term techniques
13. A debt security issued by a government spending most often issued in the country's domestic currency
Disadvantages of stocks
Government bond
Disadvantages of bonds
Stock funds
14. A nationally recognized - well-established and financially sound company
Treasury bonds
Blue chip
Cyclical stock
Characteristics of corporate bonds
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
Mutual fund
Why investors purchase mutual funds
Characteristics of corporate bonds
Treasury bonds
16. A short term debt obligation backed by the U.S. government with a maternity of less than one year
Bond funds
Convertible preferred stock
Treasury bills
Market risk systematic
17. A marketable U.S. government debt security with a fixed interest rate and a maturity between one and 10 years
Secondary markets
Moderate risk
Treasury notes
Characteristics of a mutual fund
18. 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
Defensive stock
Obtaining money to inves
Disadvantages of stocks
Your role in the investment process
19. Online research about listed companies
Google Fimamce
Characteristics of a mutual fund
Conservative risk
Mutual fund
20. Stocks Day trading - margin buying - selling short - option trading
Characteristics of corporate bonds
Short term techniques
Bond funds
Primary markets
21. A stock that provides a constant dividend and stable earnings regardless of the state of the overall stock market
Short term techniques
Why investors purchase corporate bonds
Income stock
Defensive stock
22. 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
Global investment risk
Investment Goals
Financial check up
Primary markets
23. An investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goal
Asset allocation
Stop order
Liquidity
Treasury notes
24. Call feature - sinking fund - serial redemption
Provisions for repayment
Why corp issue common stock
Secondary markets
Stop order
25. Fundamental analysis - technical analysis - efficient market theory
Characteristics of corporate bonds
Treasury bills
Investment theories
Numerical measures for stocks
26. Evaluate potential investments - seek assistance if needed - monitor the value of investments - keep accurate and current records - consider tax consequences of selling
Aggressive risk
Bond funds
Treasury bonds
Your role in the investment process
27. Primary residence: you hold legal title - place to live - mortage interest is tax deductible - usually an inflation hedge - beware of housing bubbles
Features of real estate
Financial check up
Your role in the investment process
Provisions for repayment
28. The process of selecting investments with a higher risk in order to profit from an anticipated price movement
Moderate risk
Speculative investment
Blue chip
Financial check up
29. Diversification - affordability - professional management - liquidity - low transaction costs - no disadvantages
Aggressive risk
Mutual fund
Obtaining money to inves
Advantages of mutual funds
30. An order to buy or sell a security when it's price surpasses a certain point
Stop order
Inflation risk
Market order
Long term techniques
31. Illiquidity - declining property values - lack of diversification - long depreciation period - management problems - syndicate investment is not a tax shelter
Business failure risk
Characteristics of a mutual fund
Classification of real estate investments
Disadvantage of real estate
32. Investing in something that could have a risk of a world wide issue
Disadvantages of stocks
Business failure risk
Other funds
Global investment risk
33. Combines funds of investors and invests those monies in a diversified portfolio of securities issued by corporations or governments that meet the fund objective
Bond funds
Numerical measures for stocks
Treasury notes
Why investors purchase mutual funds
34. 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)
Speculative investment
Characteristics of corporate bonds
Characteristics of a mutual fund
Income stock
35. The uncertainty over the future real value (after inflation) of your investment
Provisions for repayment
Obtaining money to inves
Inflation risk
Characteristics of a mutual fund
36. A market that exists between companies and financial institutions that is used to raise equity capital for the companies
Secondary markets
Equity capital
Investment Goals
Bond funds
37. A debt security issued by a corporation and sold to investors - higher risk higher risk and government bond
Investment Goals
Corporate bond
Obtaining money to inves
Types of bonds
38. Written promise to pay with legal conditions (indenture) - face value - maturity date - interest rate=coupon rate - trustee
Speculative investment
Characteristics of corporate bonds
Provisions for repayment
Features of real estate
39. 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
Interest rate risk
Other funds
Why corp issue common stock
Market risk systematic
40. Balance your budget including an account for investments - pay off credit cards - start an emergency fund - have access to other cash for emergencies
Convertible preferred stock
Financial check up
Characteristics of a mutual fund
Global investment risk
41. Initial public offerings - investment banks
Why investors purchase corporate bonds
Primary markets
Market order
Conservative risk
42. A risk management technique that mixes a wide variety of invests within a portfolio
Limit order
Blue chip
Numerical measures for stocks
Diversification
43. 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
Investment theories
Advantages of bonds
Why investors purchase corporate bonds
Other funds
44. Stocks buy& hold - dollar cost averaging - direct investment and DRIPS
Government bond
Google Fimamce
Advantages of mutual funds
Long term techniques
45. 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
Interest rate risk
Government bond
Advantages of stocks
Advantages of real estate
46. Direct: primary and secondary residences - commercial property - undeveloped land - foreclosures - Indirect: real estate syndicates - limited partnerships - real estate investment trusts - mortgages - participation certificates
Treasury bonds
Classification of real estate investments
Bond funds
Characteristics of a mutual fund
47. An equity security that pays regular often steadily increases dividends and offers a high yield that may generate the majority of overall returns
Speculative investment
Treasury notes
Limit order
Income stock
48. A portfolio management strategy and model for investing in fixed income that involves purchasing multiple bonds - each with different maturity dates
Disadvantages of bonds
Advantages of mutual funds
Provisions for repayment
Bond laddering
49. The risk inherent to the entire market or entire market segment unsystematic: company or industry specific risk that is inherent in each investment
Market risk systematic
Why investors purchase common stock
Primary markets
Business failure risk
50. Asset allocation funds - balanced funds - value funds - money market funds - life cycle funds - funds of funds
Other funds
Corporate bond
Bond funds
Global investment risk