WGU C214 Chapter 1 Question and answers already passed
2025/2026
1. Economics is a subfield of Finance (T/F) False
Finance is a subfield of
Economics.
2. Which of the following is not an example of Financial markets
firm capi-tal?
Cash
Machinery
Labor
Financial markets
3. Capital is defined as a financial asset. (T/F) True
4. Corporate finance is devoted to understanding various False
types of financial instruments. (T/F) Corporate
Finance,
Investments,
and
Banking/finan
-
5. Which of the following is an example of firm
capital?
Bank deposits Cash
The firm's worth None
of these choices
6. Corporate finance focuses on the decision
making by the management of the firm. (T/F)
7. What are the three important areas of
finance dis-cussed in this section?
1/
27
,estments is devoted to understanding various types of financial instru-
ments.
sh
e
porate Finance, Invest-ments, and Banking/fi-nancial institutions
2/
27
, WGU C214 Chapter 1
cial institutions
Government Finance, WAAC,
Ratios Neither of these
8. Banks make money when the interest rates
False
they charge to borrowers are less than the
Banks make money
interest rates they pay depositors. (T/F)
when the interest rates
they charge to
borrowers are MORE
than the interest
rates they pay
9. Stocks and bonds are two types of financial
depositors.
instru-ments. (T/F)
True
10. Investments is devoted to understanding
various types of financial instruments (stocks
and bonds). (T/F)
11. Stock represents ownership in a particular
company. (T/F) True
12. Companies can raise capital by issuing
bonds or stocks. (T/F) True
13. A stock is a debt instrument issued by corporations. False
A stock represents
owner-ship in a
company
14. A Treasury bond is a debt instrument issued by corpo- False
rations. A Treasury bond is a debt
instrument issued by
gov-ernments.
3/
27
2025/2026
1. Economics is a subfield of Finance (T/F) False
Finance is a subfield of
Economics.
2. Which of the following is not an example of Financial markets
firm capi-tal?
Cash
Machinery
Labor
Financial markets
3. Capital is defined as a financial asset. (T/F) True
4. Corporate finance is devoted to understanding various False
types of financial instruments. (T/F) Corporate
Finance,
Investments,
and
Banking/finan
-
5. Which of the following is an example of firm
capital?
Bank deposits Cash
The firm's worth None
of these choices
6. Corporate finance focuses on the decision
making by the management of the firm. (T/F)
7. What are the three important areas of
finance dis-cussed in this section?
1/
27
,estments is devoted to understanding various types of financial instru-
ments.
sh
e
porate Finance, Invest-ments, and Banking/fi-nancial institutions
2/
27
, WGU C214 Chapter 1
cial institutions
Government Finance, WAAC,
Ratios Neither of these
8. Banks make money when the interest rates
False
they charge to borrowers are less than the
Banks make money
interest rates they pay depositors. (T/F)
when the interest rates
they charge to
borrowers are MORE
than the interest
rates they pay
9. Stocks and bonds are two types of financial
depositors.
instru-ments. (T/F)
True
10. Investments is devoted to understanding
various types of financial instruments (stocks
and bonds). (T/F)
11. Stock represents ownership in a particular
company. (T/F) True
12. Companies can raise capital by issuing
bonds or stocks. (T/F) True
13. A stock is a debt instrument issued by corporations. False
A stock represents
owner-ship in a
company
14. A Treasury bond is a debt instrument issued by corpo- False
rations. A Treasury bond is a debt
instrument issued by
gov-ernments.
3/
27
