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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. Shares in a company whose earnings are expected to grow at an above average rate relative to the market
Growth stock
Why investors purchase corporate bonds
Obtaining money to inves
Advantages of stocks
2. A stock that rises quickly when economic growth is strong and falls rapidly when growth is slowing down
Why investors purchase mutual funds
Cyclical stock
Diversification
Corporate bond
3. Securities exchanges - over the counter market
Why corp issue common stock
Interest rate risk
Short term techniques
Secondary markets
4. By make a risky investment you can be returned with a lot of money or losing some
Growth stock
Corporate bond
Risk return trade-off
Stop order
5. Fundamental analysis - technical analysis - efficient market theory
Investment theories
Aggressive risk
Liquidity
Defensive stock
6. 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
Market order
Stock funds
Moderate risk
Corporate bond
7. An order placed with a brokerage to buy or sell a set number of shares at a specific price or better
Limit order
Why investors purchase common stock
Other funds
Long term techniques
8. A marketable U.S. government debt security with a fixed interest rate and a maturity between one and 10 years
Your role in the investment process
Advantages of mutual funds
Conservative risk
Treasury notes
9. The risk inherent to the entire market or entire market segment unsystematic: company or industry specific risk that is inherent in each investment
Google Fimamce
Why investors purchase mutual funds
Market risk systematic
Advantages of stocks
10. A market that exists between companies and financial institutions that is used to raise equity capital for the companies
Stock funds
Limit order
Corporate bond
Equity capital
11. A portfolio management strategy and model for investing in fixed income that involves purchasing multiple bonds - each with different maturity dates
Stop order
Iinvestors choose precious metals
Risk return trade-off
Bond laddering
12. Debenture bond - mortage bond - subordinated debenture bond - convertible bond - high yield bond
Business failure risk
Treasury bills
Types of bonds
Convertible preferred stock
13. Corporate earnings - earnings per share - price earnings rato (PE) - dividend payout - dividend yield - total return - beta - market to book ratio
Risk return trade-off
Convertible preferred stock
Your role in the investment process
Numerical measures for stocks
14. A marketable fixed interest U.S. government debt security with a maturity of more than 10 years
Why investors purchase common stock
Advantages of mutual funds
Stock funds
Treasury bonds
15. An equity security that pays regular often steadily increases dividends and offers a high yield that may generate the majority of overall returns
Asset allocation
Income stock
Types of bonds
Advantages of stocks
16. 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
Income stock
Classification of real estate investments
Market risk systematic
17. A lot of risk is involved
Moderate risk
Aggressive risk
Convertible preferred stock
Income stock
18. 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
Google Fimamce
Stock funds
Classification of real estate investments
19. 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
Income stock
Blue chip
Market order
Mutual fund
20. An investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goal
Asset allocation
Risk return trade-off
Features of real estate
Characteristics of corporate bonds
21. 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
Why investors purchase corporate bonds
Financial check up
Obtaining money to inves
Liquidity
22. 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
Secondary markets
Interest rate risk
Why investors purchase corporate bonds
Other funds
23. The process of selecting investments with a higher risk in order to profit from an anticipated price movement
Your role in the investment process
Speculative investment
Global investment risk
Short term techniques
24. Written promise to pay with legal conditions (indenture) - face value - maturity date - interest rate=coupon rate - trustee
Diversification
Characteristics of corporate bonds
Asset allocation
Equity capital
25. A debt security issued by a corporation and sold to investors - higher risk higher risk and government bond
Financial check up
Government bond
Market risk systematic
Corporate bond
26. 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 investors purchase mutual funds
Cyclical stock
Other funds
Numerical measures for stocks
27. Stocks buy& hold - dollar cost averaging - direct investment and DRIPS
Google Fimamce
Blue chip
Inflation risk
Long term techniques
28. A debt security issued by a government spending most often issued in the country's domestic currency
Government bond
Stock funds
Equity capital
Bond funds
29. The risk that an investments value will change due to the change due to the change in the absolute level of interest rates
Obtaining money to inves
Provisions for repayment
Moderate risk
Interest rate risk
30. Primary residence: you hold legal title - place to live - mortage interest is tax deductible - usually an inflation hedge - beware of housing bubbles
Speculative investment
Features of real estate
Business failure risk
Blue chip
31. The uncertainty over the future real value (after inflation) of your investment
Inflation risk
Liquidity
Google Fimamce
Speculative investment
32. Diversification - affordability - professional management - liquidity - low transaction costs - no disadvantages
Speculative investment
Risk return trade-off
Disadvantage of real estate
Advantages of mutual funds
33. Company could fail - market volatility - uncertain yield - management time required - risk
Advantages of mutual funds
Disadvantages of stocks
Moderate risk
Convertible preferred stock
34. Income from dividends - potential stock split - appreciation of stock value
Investment Goals
Advantages of mutual funds
Why investors purchase common stock
Numerical measures for stocks
35. Balance your budget including an account for investments - pay off credit cards - start an emergency fund - have access to other cash for emergencies
Disadvantages of stocks
Risk return trade-off
Financial check up
Business failure risk
36. A stock that provides a constant dividend and stable earnings regardless of the state of the overall stock market
Why investors purchase corporate bonds
Inflation risk
Defensive stock
Risk return trade-off
37. Initial public offerings - investment banks
Disadvantage of real estate
Advantages of real estate
Primary markets
Global investment risk
38. Investing in something that could have a risk of a world wide issue
Global investment risk
Moderate risk
Interest rate risk
Treasury notes
39. Medium amount of risk is involved
Government bond
Moderate risk
Your role in the investment process
Blue chip
40. Interest rate risk - face value volatility - no hedge against inflation - principal does not appreciate - difficult to compound
Why investors purchase corporate bonds
Numerical measures for stocks
Stock funds
Disadvantages of bonds
41. 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
Treasury bills
Moderate risk
Disadvantage of real estate
Convertible preferred stock
42. Investing stock in a company and having the risk that it will shut down
Market order
Moderate risk
Business failure risk
Advantages of mutual funds
43. Not much risk is involved
Global investment risk
Secondary markets
Conservative risk
Speculative investment
44. 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
Long term techniques
Bond laddering
Iinvestors choose precious metals
Speculative investment
45. An order to buy or sell a security when it's price surpasses a certain point
Primary markets
Corporate bond
Stop order
Asset allocation
46. Call feature - sinking fund - serial redemption
Defensive stock
Provisions for repayment
Why investors purchase mutual funds
Speculative investment
47. Evaluate potential investments - seek assistance if needed - monitor the value of investments - keep accurate and current records - consider tax consequences of selling
Disadvantage of real estate
Stock funds
Advantages of real estate
Your role in the investment process
48. Asset allocation funds - balanced funds - value funds - money market funds - life cycle funds - funds of funds
Bond funds
Liquidity
Other funds
Advantages of bonds
49. Cash dividends - price appearance - hedge against inflation - low minimum investment - limited liability - liquidity
Types of bonds
Why investors purchase corporate bonds
Limit order
Advantages of stocks
50. A risk management technique that mixes a wide variety of invests within a portfolio
Asset allocation
Numerical measures for stocks
Obtaining money to inves
Diversification