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