WGU C214 Question and answers
already passed 2025/2026
Securities act of 1933 - correct answer ✔*Prospectus* with audited financial statements through the
SEC (for transparency)
SEC - correct answer ✔Regulates security markets for transparency, 10 k annual reports required by
public companies
Sarbanes-Oxley Act - correct answer ✔Transparency by requiring off balance sheet transaction
reporting,
audited, internal controls with an annual audit required
FINRA - correct answer ✔To protect investors
Must be a member to buy or sell securities on behalf of someone else, for example, the series 67 test is
though FINRA (competency test)
Has the authority to unbar ethical people for life
Rule 144A - correct answer ✔The sale of private securities in the US to US investors
Rule S - correct answer ✔The sell of private securities offshore to foreign investors
Dodd-Frank Act - correct answer ✔"Too big to fail"
,The idea that if big bank fail it will crash the economy (limit risk)
More the 250 b in assists
FSOC (Financial Stability Oversight Council) - correct answer ✔Regulate systematic risk
What is the risk that large financial institutions posed to the entire economy
Volked Rule - correct answer ✔Limits proprietary/hedge fund trading by Banks. Instead they should be
focused customer, focused business
decrease CFO - correct answer ✔An increase from an asset will _
Increase CFO - correct answer ✔A decrease from an asset will _
Increase CFO - correct answer ✔An increase from an liability will _
Decrease CFO - correct answer ✔An decrease from an liability will _
Stocks subsequent to IPO's - correct answer ✔Secondary markets sell _
AR and inventory (no cash) - correct answer ✔Current assets for CFO are
AP and accrued expenses - correct answer ✔Current liabilities for CFO are
U.S Outsourcing (using foreign Suppliers) - correct answer ✔Fewer US jobs
, Cheaper consumer goods (good thing)
foreign competition (compete with domestic firms) - correct answer ✔Fewer US jobs
Cheaper consumer goods (good)
Tariffs (Tax on imported goods) - correct answer ✔More US jobs and profits
More expensive consumer goods (bad)
Tariffs: good for firms but bad for economy
Strong Dollar - correct answer ✔Imports are cheap
Fewer US jobs
weak Dollar - correct answer ✔Imports are expensive
More US jobs
required return - correct answer ✔Minimum inducement to buy
expected return - correct answer ✔Returns bars, expect to earn
already passed 2025/2026
Securities act of 1933 - correct answer ✔*Prospectus* with audited financial statements through the
SEC (for transparency)
SEC - correct answer ✔Regulates security markets for transparency, 10 k annual reports required by
public companies
Sarbanes-Oxley Act - correct answer ✔Transparency by requiring off balance sheet transaction
reporting,
audited, internal controls with an annual audit required
FINRA - correct answer ✔To protect investors
Must be a member to buy or sell securities on behalf of someone else, for example, the series 67 test is
though FINRA (competency test)
Has the authority to unbar ethical people for life
Rule 144A - correct answer ✔The sale of private securities in the US to US investors
Rule S - correct answer ✔The sell of private securities offshore to foreign investors
Dodd-Frank Act - correct answer ✔"Too big to fail"
,The idea that if big bank fail it will crash the economy (limit risk)
More the 250 b in assists
FSOC (Financial Stability Oversight Council) - correct answer ✔Regulate systematic risk
What is the risk that large financial institutions posed to the entire economy
Volked Rule - correct answer ✔Limits proprietary/hedge fund trading by Banks. Instead they should be
focused customer, focused business
decrease CFO - correct answer ✔An increase from an asset will _
Increase CFO - correct answer ✔A decrease from an asset will _
Increase CFO - correct answer ✔An increase from an liability will _
Decrease CFO - correct answer ✔An decrease from an liability will _
Stocks subsequent to IPO's - correct answer ✔Secondary markets sell _
AR and inventory (no cash) - correct answer ✔Current assets for CFO are
AP and accrued expenses - correct answer ✔Current liabilities for CFO are
U.S Outsourcing (using foreign Suppliers) - correct answer ✔Fewer US jobs
, Cheaper consumer goods (good thing)
foreign competition (compete with domestic firms) - correct answer ✔Fewer US jobs
Cheaper consumer goods (good)
Tariffs (Tax on imported goods) - correct answer ✔More US jobs and profits
More expensive consumer goods (bad)
Tariffs: good for firms but bad for economy
Strong Dollar - correct answer ✔Imports are cheap
Fewer US jobs
weak Dollar - correct answer ✔Imports are expensive
More US jobs
required return - correct answer ✔Minimum inducement to buy
expected return - correct answer ✔Returns bars, expect to earn
