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Test your basic knowledge |
Investments
Start Test
Study First
Subject
:
personal-finance
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. Underlying asset is a real asset - typically either an agricultural product or a natural resource product
Variance
Dollar-Weighted Average Return
CDSC
Commodity Futures
2. A company that owns income producing real estate
Market Timing
Geometric Average Return
Margin Call
REIT
3. The price specified in an option contract at which the underlying asset can be bought (for a call option) or sold (for a put option). Also called the striking price or exercise price.
Security Selection
Hedge Fund
Strike Price
Turnover
4. Pledging securities as collateral against a loan
Margin Call
Hypothecation
Effective Annual Return (EAR)
Cash Account
5. An option that gives the owner the right - but not the obligation - to buy an asset
Call Option
Open-End Fund
Security Selection
Total Dollar Return
6. A measure of how much trading a fund does - calculated as the lesser of total purchases or sales during a year divided by average daily assets
Variance
CDSC
Call Money Rate
Turnover
7. Insurance fund convering investors' brokerage accounts with member firms
Dividend Yield
REIT
Margin
Securities Investor Protection Corporation (SIPC)
8. A common measure of volatility
Variance
Total Market Capitalization
Primary Asset
Arithmetic Average Return
9. Security originally sold by a business or government to raise money
Primary Asset
Financial Futures
Variance
Geometric Average Return
10. An investment company not accessible by the general public
Money Market Mutual Fund
Normal Distribution
Hedge Fund
Asset Allocation
11. The rate of return on a riskless investment
Risk-Free Rate
Initial Margin
Normal Distribution
Mutual Fund
12. Debt obligations of large corporations and governments with an original maturity of one year or less
Money Market Instuments
Risk-Free Rate
Put Option
Commodity Futures
13. A financial asset that is derived from an existing traded asset rather than issued by a business or government to raise capital. More generally - any financial asset that is not a primary asset.
Derivative Asset
Risk Premium
Net Asset Value
Closed-End Fund
14. The return on an investment expressed on a per-year - or 'annualized -' basis
Effective Annual Return (EAR)
Risk Premium
Normal Distribution
NYSE Uptick Rule
15. Selection of specific securities within a particular class
Asset Allocation
Closed-End Fund
Security Selection
12b-1 Fees
16. The average compound return earned per year over a multiyear period.
Money Market Mutual Fund
Margin
Geometric Average Return
CDSC
17. The minimum margin that must be supplied on a securities purchase
Initial Margin
Hedge Fund
Securities Investor Protection Corporation (SIPC)
Call Option
18. Or market cap for short is equal to its stock price multiplied by the number of shares of stock. It's the total value of the company's stock.
Money Market Mutual Fund
Financial Futures
Mutual Fund
Total Market Capitalization
19. The square root of the variance
Risk Premium
Hedge Fund
Security Selection
Standard Deviation
20. A sales charge levied on purchases of shares in some mutual funds
CDSC
Current Yield
Front-End Load
Commodity Futures
21. The interest rate brokers pay to borrow bank funds for lending to customer margin accounts
Option Contract
Risk-Free Rate
Short Interest
Call Money Rate
22. The value of assets less liabilities held by a mutual fund - divided by the number of shares outstanding.
Net Asset Value
Margin
Geometric Average Return
Short Interest
23. An agreement that gives the owner the right - but not the obligation - to buy or sell a specific asset at a specified price for a set period of time.
Put Option
Option Contract
Strike Price
Geometric Average Return
24. The amount of common stock held in short positions
Total Market Capitalization
Margin Call
Variance
Short Interest
25. A symmetric - bell-shaped frequency distribution that is completely defined by its average and standard deviation.
CDSC
Normal Distribution
Arithmetic Average Return
Current Yield
26. A mutual fund specializing in money market instruments
Commodity Futures
Effective Annual Return (EAR)
Money Market Mutual Fund
Margin Account
27. An agreement made today regarding the terms of a trade that will take place later.
Short Interest
Hedge Fund
Strike Price
Futures Contract
28. The annual stock dividend as a percentage of the initial stock price
REIT
Dividend Yield
Dollar-Weighted Average Return
Initial Margin
29. The return on an investment measured as a percentage that accounts for all cash flows and capital gains or losses
NYSE Uptick Rule
Derivative Asset
12b-1 Fees
Total Percent Return
30. An investment company with a fixed number of shares that are bought and sold only in the open stock market.
Normal Distribution
Margin
Commodity Futures
Closed-End Fund
31. A demand for more funds that occurs when the margin in an account drops below the maintenance margin
Margin Call
Closed-End Fund
Dollar-Weighted Average Return
Money Market Instuments
32. An arrangement under which a broker is the registered owner of a security
12b-1 Fees
Risk Premium
Margin Account
Street Name
33. A sales charge levied when investors redeem shares (also called a 'back-end' load).
Money Market Instuments
Asset Allocation
Market Timing
CDSC
34. The distribution of investment funds among broad classes of assets
Asset Allocation
Standard Deviation
Front-End Load
Option Contract
35. Longer-term debt obligations - often of corporations and governments - that promise to make fixed payments according to a preset schedule.
Short Interest
Fixed-Income Securities
Hypothecation
Money Market Instuments
36. Buying and selling in anticipation of the overall direction of a market
Securities Investor Protection Corporation (SIPC)
Market Timing
Short Sale
Money Market Mutual Fund
37. Rule for short sale requiring that before a short sale can be executed - the last price change must be an uptick
Effective Annual Return (EAR)
Arithmetic Average Return
NYSE Uptick Rule
Total Dollar Return
38. The extra return on a risky asset over the risk-free rate; the reward for bearing risk.
Money Market Mutual Fund
Maintenance Margin
Security Selection
Risk Premium
39. An investment company that stands ready to buy and sell shares at any time.
Maintenance Margin
Geometric Average Return
Open-End Fund
Risk Premium
40. Simply a means of combining or pooling the funds of a large group of investors. The buy and sell decisions for the resulting pool are then made by a fund manager - who is compensated for the service provided.
Mutual Fund
Derivative Asset
Money Market Instuments
Short Interest
41. The price you pay to buy an option
Dollar-Weighted Average Return
Short Sale
Option Premium
Securities Investor Protection Corporation (SIPC)
42. The change in stock price as a percentage of the initial stock price.
Effective Annual Return (EAR)
Put Option
Capital Gains Yield
Margin Account
43. Annual coupon divided by the current bond price
Put Option
Total Market Capitalization
Dollar-Weighted Average Return
Current Yield
44. A sale in which the seller does not actually own the security that is sold
Margin Call
Hedge Fund
Short Sale
Short Interest
45. A brokerage account in which all transactions are made on a strictly cash basis
Derivative Asset
12b-1 Fees
Cash Account
NYSE Uptick Rule
46. The portion of the value of an investment that is not borrowed
Closed-End Fund
Geometric Average Return
Margin
Strike Price
47. Underlying asset is intangible - usually stocks - bonds - currencies - or money market instruments.
Financial Futures
Geometric Average Return
Option Premium
Turnover
48. The minimum margin that must be present at all times in a margin account
Street Name
Asset Allocation
Maintenance Margin
Cash Account
49. Average compound rate of return earned per year over a multiyear period accounting for investment inflows and outflows
Arithmetic Average Return
Dollar-Weighted Average Return
NYSE Uptick Rule
Risk-Free Rate
50. The return on an investment measured in dollars that accounts for all cash flows and capital gains or losses
REIT
Primary Asset
Total Dollar Return
NYSE Uptick Rule