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