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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. 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
Corporate bond
Obtaining money to inves
Google Fimamce
Diversification
2. A stock that provides a constant dividend and stable earnings regardless of the state of the overall stock market
Defensive stock
Business failure risk
Advantages of real estate
Speculative investment
3. A debt security issued by a government spending most often issued in the country's domestic currency
Financial check up
Limit order
Investment theories
Government bond
4. Call feature - sinking fund - serial redemption
Bond funds
Characteristics of corporate bonds
Provisions for repayment
Financial check up
5. Diversification - affordability - professional management - liquidity - low transaction costs - no disadvantages
Risk return trade-off
Other funds
Advantages of mutual funds
Advantages of stocks
6. 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
Inflation risk
Convertible preferred stock
Disadvantages of bonds
Mutual fund
7. Corporate earnings - earnings per share - price earnings rato (PE) - dividend payout - dividend yield - total return - beta - market to book ratio
Advantages of real estate
Numerical measures for stocks
Business failure risk
Why investors purchase common stock
8. Investing stock in a company and having the risk that it will shut down
Your role in the investment process
Financial check up
Other funds
Business failure risk
9. A short term debt obligation backed by the U.S. government with a maternity of less than one year
Equity capital
Treasury bills
Convertible preferred stock
Moderate risk
10. 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
Bond funds
Why investors purchase corporate bonds
Disadvantages of bonds
Features of real estate
11. 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
Other funds
Short term techniques
Market order
Iinvestors choose precious metals
12. Balance your budget including an account for investments - pay off credit cards - start an emergency fund - have access to other cash for emergencies
Characteristics of corporate bonds
Defensive stock
Financial check up
Secondary markets
13. A market that exists between companies and financial institutions that is used to raise equity capital for the companies
Features of real estate
Equity capital
Treasury notes
Secondary markets
14. 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
Investment Goals
Why investors purchase corporate bonds
Classification of real estate investments
15. Initial public offerings - investment banks
Blue chip
Primary markets
Global investment risk
Market order
16. Asset allocation funds - balanced funds - value funds - money market funds - life cycle funds - funds of funds
Why investors purchase mutual funds
Investment theories
Other funds
Advantages of stocks
17. 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
Treasury bonds
Stop order
Equity capital
Advantages of real estate
18. The uncertainty over the future real value (after inflation) of your investment
Bond laddering
Inflation risk
Google Fimamce
Short term techniques
19. An order to buy or sell a security when it's price surpasses a certain point
Other funds
Stop order
Secondary markets
Short term techniques
20. Shares in a company whose earnings are expected to grow at an above average rate relative to the market
Google Fimamce
Growth stock
Why investors purchase common stock
Aggressive risk
21. An order placed with a brokerage to buy or sell a set number of shares at a specific price or better
Convertible preferred stock
Advantages of stocks
Defensive stock
Limit order
22. 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
Speculative investment
Asset allocation
Why corp issue common stock
Advantages of stocks
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)
Investment Goals
Iinvestors choose precious metals
Advantages of stocks
Characteristics of a mutual fund
24. Direct: primary and secondary residences - commercial property - undeveloped land - foreclosures - Indirect: real estate syndicates - limited partnerships - real estate investment trusts - mortgages - participation certificates
Bond laddering
Characteristics of corporate bonds
Equity capital
Classification of real estate investments
25. Written promise to pay with legal conditions (indenture) - face value - maturity date - interest rate=coupon rate - trustee
Risk return trade-off
Short term techniques
Investment theories
Characteristics of corporate bonds
26. The process of selecting investments with a higher risk in order to profit from an anticipated price movement
Speculative investment
Numerical measures for stocks
Equity capital
Defensive stock
27. 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
Iinvestors choose precious metals
Asset allocation
Stock funds
Bond laddering
28. Company could fail - market volatility - uncertain yield - management time required - risk
Advantages of real estate
Obtaining money to inves
Disadvantages of stocks
Mutual fund
29. Stocks buy& hold - dollar cost averaging - direct investment and DRIPS
Mutual fund
Long term techniques
Growth stock
Equity capital
30. Stocks Day trading - margin buying - selling short - option trading
Short term techniques
Advantages of mutual funds
Blue chip
Bond laddering
31. 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
Risk return trade-off
Interest rate risk
Mutual fund
Other funds
32. Fundamental analysis - technical analysis - efficient market theory
Corporate bond
Features of real estate
Investment theories
Your role in the investment process
33. Income from dividends - potential stock split - appreciation of stock value
Characteristics of a mutual fund
Why investors purchase common stock
Speculative investment
Numerical measures for stocks
34. A debt security issued by a corporation and sold to investors - higher risk higher risk and government bond
Corporate bond
Short term techniques
Cyclical stock
Investment Goals
35. 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
Advantages of bonds
Classification of real estate investments
Convertible preferred stock
Cumulative stock
36. Not much risk is involved
Types of bonds
Conservative risk
Mutual fund
Bond laddering
37. Interest rate risk - face value volatility - no hedge against inflation - principal does not appreciate - difficult to compound
Blue chip
Stop order
Disadvantages of bonds
Stock funds
38. 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
Classification of real estate investments
Aggressive risk
Business failure risk
39. 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
Advantages of mutual funds
Risk return trade-off
Characteristics of corporate bonds
Investment Goals
40. The risk that an investments value will change due to the change due to the change in the absolute level of interest rates
Treasury bills
Long term techniques
Investment Goals
Interest rate risk
41. By make a risky investment you can be returned with a lot of money or losing some
Primary markets
Why investors purchase mutual funds
Risk return trade-off
Speculative investment
42. A marketable fixed interest U.S. government debt security with a maturity of more than 10 years
Advantages of stocks
Investment theories
Treasury bonds
Obtaining money to inves
43. The risk inherent to the entire market or entire market segment unsystematic: company or industry specific risk that is inherent in each investment
Cumulative stock
Market risk systematic
Defensive stock
Your role in the investment process
44. Debenture bond - mortage bond - subordinated debenture bond - convertible bond - high yield bond
Long term techniques
Risk return trade-off
Aggressive risk
Types of bonds
45. 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
Market order
Advantages of bonds
Long term techniques
Cumulative stock
46. Medium amount of risk is involved
Treasury bills
Why corp issue common stock
Short term techniques
Moderate risk
47. 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
Other funds
Features of real estate
Stock funds
48. Illiquidity - declining property values - lack of diversification - long depreciation period - management problems - syndicate investment is not a tax shelter
Convertible preferred stock
Global investment risk
Disadvantage of real estate
Inflation risk
49. Securities exchanges - over the counter market
Why investors purchase corporate bonds
Secondary markets
Bond laddering
Inflation risk
50. A risk management technique that mixes a wide variety of invests within a portfolio
Investment Goals
Provisions for repayment
Diversification
Treasury notes