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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. Income from dividends - potential stock split - appreciation of stock value
Financial check up
Business failure risk
Why investors purchase common stock
Growth stock
2. Cash dividends - price appearance - hedge against inflation - low minimum investment - limited liability - liquidity
Speculative investment
Iinvestors choose precious metals
Global investment risk
Advantages of stocks
3. An order to buy or sell a security when it's price surpasses a certain point
Cyclical stock
Stop order
Inflation risk
Characteristics of corporate bonds
4. A debt security issued by a government spending most often issued in the country's domestic currency
Government bond
Conservative risk
Short term techniques
Google Fimamce
5. Shares in a company whose earnings are expected to grow at an above average rate relative to the market
Growth stock
Income stock
Business failure risk
Market order
6. The degree to which an asset or security can be bought or sold in the market without affecting the asset's price
Treasury notes
Characteristics of a mutual fund
Inflation risk
Liquidity
7. Company could fail - market volatility - uncertain yield - management time required - risk
Disadvantages of stocks
Why investors purchase common stock
Other funds
Features of real estate
8. A portfolio management strategy and model for investing in fixed income that involves purchasing multiple bonds - each with different maturity dates
Global investment risk
Defensive stock
Bond laddering
Provisions for repayment
9. 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 corp issue common stock
Market risk systematic
Risk return trade-off
Why investors purchase mutual funds
10. A marketable fixed interest U.S. government debt security with a maturity of more than 10 years
Moderate risk
Corporate bond
Types of bonds
Treasury bonds
11. Corporate earnings - earnings per share - price earnings rato (PE) - dividend payout - dividend yield - total return - beta - market to book ratio
Market order
Numerical measures for stocks
Advantages of stocks
Secondary markets
12. 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
Convertible preferred stock
Advantages of real estate
Characteristics of a mutual fund
Limit order
13. Investing stock in a company and having the risk that it will shut down
Business failure risk
Why corp issue common stock
Interest rate risk
Why investors purchase corporate bonds
14. 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
Why corp issue common stock
Conservative risk
Speculative investment
Short term techniques
15. 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
Stop order
Advantages of bonds
Risk return trade-off
Growth stock
16. A stock that provides a constant dividend and stable earnings regardless of the state of the overall stock market
Defensive stock
Market risk systematic
Short term techniques
Government bond
17. Investing in something that could have a risk of a world wide issue
Investment Goals
Types of bonds
Advantages of mutual funds
Global investment risk
18. A short term debt obligation backed by the U.S. government with a maternity of less than one year
Treasury bills
Business failure risk
Aggressive risk
Other funds
19. The uncertainty over the future real value (after inflation) of your investment
Types of bonds
Secondary markets
Speculative investment
Inflation risk
20. 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
Defensive stock
Why corp issue common stock
Stock funds
Advantages of bonds
21. 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
Convertible preferred stock
Limit order
Cumulative stock
Conservative risk
22. Medium amount of risk is involved
Stock funds
Equity capital
Obtaining money to inves
Moderate risk
23. 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
Market risk systematic
Iinvestors choose precious metals
Mutual fund
Convertible preferred stock
24. A debt security issued by a corporation and sold to investors - higher risk higher risk and government bond
Corporate bond
Types of bonds
Equity capital
Advantages of bonds
25. Written promise to pay with legal conditions (indenture) - face value - maturity date - interest rate=coupon rate - trustee
Characteristics of corporate bonds
Market order
Treasury bills
Other funds
26. Direct: primary and secondary residences - commercial property - undeveloped land - foreclosures - Indirect: real estate syndicates - limited partnerships - real estate investment trusts - mortgages - participation certificates
Primary markets
Defensive stock
Inflation risk
Classification of real estate investments
27. Primary residence: you hold legal title - place to live - mortage interest is tax deductible - usually an inflation hedge - beware of housing bubbles
Long term techniques
Features of real estate
Secondary markets
Risk return trade-off
28. Securities exchanges - over the counter market
Numerical measures for stocks
Secondary markets
Treasury bonds
Bond funds
29. 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
Blue chip
Growth stock
Equity capital
Iinvestors choose precious metals
30. The process of selecting investments with a higher risk in order to profit from an anticipated price movement
Speculative investment
Investment theories
Provisions for repayment
Equity capital
31. Balance your budget including an account for investments - pay off credit cards - start an emergency fund - have access to other cash for emergencies
Investment theories
Advantages of stocks
Provisions for repayment
Financial check up
32. Interest rate risk - face value volatility - no hedge against inflation - principal does not appreciate - difficult to compound
Disadvantages of bonds
Bond funds
Diversification
Risk return trade-off
33. A nationally recognized - well-established and financially sound company
Numerical measures for stocks
Types of bonds
Disadvantages of stocks
Blue chip
34. Stocks buy& hold - dollar cost averaging - direct investment and DRIPS
Long term techniques
Growth stock
Why investors purchase common stock
Treasury bills
35. A market that exists between companies and financial institutions that is used to raise equity capital for the companies
Risk return trade-off
Equity capital
Treasury bonds
Stock funds
36. An equity security that pays regular often steadily increases dividends and offers a high yield that may generate the majority of overall returns
Disadvantages of stocks
Risk return trade-off
Corporate bond
Income stock
37. Call feature - sinking fund - serial redemption
Bond funds
Provisions for repayment
Speculative investment
Inflation risk
38. An investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goal
Classification of real estate investments
Obtaining money to inves
Treasury notes
Asset allocation
39. Illiquidity - declining property values - lack of diversification - long depreciation period - management problems - syndicate investment is not a tax shelter
Cumulative stock
Convertible preferred stock
Secondary markets
Disadvantage of real estate
40. Not much risk is involved
Stop order
Conservative risk
Why investors purchase corporate bonds
Advantages of mutual funds
41. 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
Provisions for repayment
Aggressive risk
Diversification
Obtaining money to inves
42. Fundamental analysis - technical analysis - efficient market theory
Treasury bonds
Investment Goals
Investment theories
Advantages of bonds
43. 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
Cyclical stock
Financial check up
Your role in the investment process
44. Asset allocation funds - balanced funds - value funds - money market funds - life cycle funds - funds of funds
Other funds
Speculative investment
Defensive stock
Investment Goals
45. 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
Moderate risk
Iinvestors choose precious metals
Corporate bond
46. Stocks Day trading - margin buying - selling short - option trading
Short term techniques
Speculative investment
Bond funds
Market risk systematic
47. Debenture bond - mortage bond - subordinated debenture bond - convertible bond - high yield bond
Other funds
Income stock
Growth stock
Types of bonds
48. 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 stocks
Why investors purchase corporate bonds
Why investors purchase mutual funds
Risk return trade-off
49. Evaluate potential investments - seek assistance if needed - monitor the value of investments - keep accurate and current records - consider tax consequences of selling
Why investors purchase mutual funds
Characteristics of a mutual fund
Your role in the investment process
Treasury bonds
50. A lot of risk is involved
Diversification
Stop order
Why investors purchase common stock
Aggressive risk