WGU D775 OBJECTIVE ASSESSMENT V1 & V2
NEWEST 2026 TEST BANK| D775 INTRODUCTION TO
BUSINESS FINANCE OA EXAM WITH COMPLETE 350
REAL EXAM QUESTIONS AND CORRECT VERIFIED
ANSWERS/ ALREADY GRADED A+
D775 INTRODUCTION TO BUSINESS FINANCE OA V1
What is the main purpose of pension funds?
1) To provide short-term loans to businesses for corporate growth
2) To issue corporate bonds for funding of corporate operations
3) To manage individual savings accounts for growth and stability
4) To ensure growth and sustainability of retirement savings - Correct
Answer - To ensure growth and sustainability of retirement savings
What is the function of financial markets in the economy?
1) To provide insurance services from savers to borrowers
2) To collect taxes for the government from savers to borrowers
3) To create new financial laws from savers to borrowers
4) To facilitate the flow of capital from savers to borrowers - Correct
Answer - To facilitate the flow of capital from savers to borrowers
What is the purpose of the primary market?
1) To regulate financial markets through trading rules
2) To trade existing securities among retail investors
pg. 1
,3) To provide derivative insurance for financial transactions
4) To issue new securities and raise capital for issuers - Correct Answer -
To issue new securities and raise capital for issuers
What is the role of financial institutions in the economy?
1) Providing the legal services
2) Creating the financial laws
3) Facilitating the flow of funds
4) Managing government policies - Correct Answer - Facilitating the
flow of funds
What is a function of investment banks?
1) Managing pension funds through investment
2) Providing health insurance via reinsurance
3) Underwriting new security issues
4) Accepting deposits and savings accounts - Correct Answer -
Underwriting new security issues
What is the function of pension funds?
1) Facilitating active mergers and acquisitions
2) Providing short-term loans for firm growth
3) Managing retirement savings for individuals
4) Offering insurance policies to those not covered - Correct Answer -
Managing retirement savings for individuals
What does an inverted yield curve typically predict?
pg. 2
,1) Low interest rates
2) Increased consumer spending
3) Economic recession
4) Economic growth - Correct Answer - Economic recession
What is the primary focus of ethics in finance?
1) Maximizing short-term profits as Milton Friedman argued
2) Reducing taxes for corporations to facilitate trickle-down policy
3) Increasing market share to ensure everyone profits from firm growth
4) Guiding moral principles and standards in financial behavior - Correct
Answer - Guiding moral principles and standards in financial behavior
How can companies address agency problems?
1) By promoting insider trading
2) By avoiding performance-based compensation
3) By ignoring conflicts of interest
4) By implementing strong governance structures - Correct Answer - By
implementing strong governance structures
Why is offshoring sometimes considered contentious?
1) It sets the standard for minimum wages.
2) It ensures there is no child labor practiced.
3) It can exploit vulnerable workers.
4) It helps with the salary gap for workers. - Correct Answer - It can
exploit vulnerable workers.
pg. 3
, Which factors cause a dollar today to be worth more than a dollar in the
future?
1) Risk, Inflation, and Compounding
2) Opportunity, Compounding, and Risk
3) Risk, Inflation, and Opportunity
4) Inflation, Risk, and Discounting - Correct Answer - Risk, Inflation,
and Opportunity
What is compounding in the context of time value of money (TVM)?
1) The adjustment of investment values due to inflation
2) The process of moving sums of money into the future
3) The practice of saving money without earning any interest
4) The calculation of a present sum of money based on future values
(FVs) - Correct Answer - The process of moving sums of money into the
future
Why is the future value (FV) of a lump sum higher than its present value
(PV)?
1) Because future money is free from risk
2) Because money grows over time due to interest earned
3) Because the purchasing power of money increases over time
4) Because money has a constant value through time - Correct Answer -
Because money grows over time due to interest earned
What does the present value interest factor (PVIF) represent?
1) The future value (FV) of an investment today
pg. 4
NEWEST 2026 TEST BANK| D775 INTRODUCTION TO
BUSINESS FINANCE OA EXAM WITH COMPLETE 350
REAL EXAM QUESTIONS AND CORRECT VERIFIED
ANSWERS/ ALREADY GRADED A+
D775 INTRODUCTION TO BUSINESS FINANCE OA V1
What is the main purpose of pension funds?
1) To provide short-term loans to businesses for corporate growth
2) To issue corporate bonds for funding of corporate operations
3) To manage individual savings accounts for growth and stability
4) To ensure growth and sustainability of retirement savings - Correct
Answer - To ensure growth and sustainability of retirement savings
What is the function of financial markets in the economy?
1) To provide insurance services from savers to borrowers
2) To collect taxes for the government from savers to borrowers
3) To create new financial laws from savers to borrowers
4) To facilitate the flow of capital from savers to borrowers - Correct
Answer - To facilitate the flow of capital from savers to borrowers
What is the purpose of the primary market?
1) To regulate financial markets through trading rules
2) To trade existing securities among retail investors
pg. 1
,3) To provide derivative insurance for financial transactions
4) To issue new securities and raise capital for issuers - Correct Answer -
To issue new securities and raise capital for issuers
What is the role of financial institutions in the economy?
1) Providing the legal services
2) Creating the financial laws
3) Facilitating the flow of funds
4) Managing government policies - Correct Answer - Facilitating the
flow of funds
What is a function of investment banks?
1) Managing pension funds through investment
2) Providing health insurance via reinsurance
3) Underwriting new security issues
4) Accepting deposits and savings accounts - Correct Answer -
Underwriting new security issues
What is the function of pension funds?
1) Facilitating active mergers and acquisitions
2) Providing short-term loans for firm growth
3) Managing retirement savings for individuals
4) Offering insurance policies to those not covered - Correct Answer -
Managing retirement savings for individuals
What does an inverted yield curve typically predict?
pg. 2
,1) Low interest rates
2) Increased consumer spending
3) Economic recession
4) Economic growth - Correct Answer - Economic recession
What is the primary focus of ethics in finance?
1) Maximizing short-term profits as Milton Friedman argued
2) Reducing taxes for corporations to facilitate trickle-down policy
3) Increasing market share to ensure everyone profits from firm growth
4) Guiding moral principles and standards in financial behavior - Correct
Answer - Guiding moral principles and standards in financial behavior
How can companies address agency problems?
1) By promoting insider trading
2) By avoiding performance-based compensation
3) By ignoring conflicts of interest
4) By implementing strong governance structures - Correct Answer - By
implementing strong governance structures
Why is offshoring sometimes considered contentious?
1) It sets the standard for minimum wages.
2) It ensures there is no child labor practiced.
3) It can exploit vulnerable workers.
4) It helps with the salary gap for workers. - Correct Answer - It can
exploit vulnerable workers.
pg. 3
, Which factors cause a dollar today to be worth more than a dollar in the
future?
1) Risk, Inflation, and Compounding
2) Opportunity, Compounding, and Risk
3) Risk, Inflation, and Opportunity
4) Inflation, Risk, and Discounting - Correct Answer - Risk, Inflation,
and Opportunity
What is compounding in the context of time value of money (TVM)?
1) The adjustment of investment values due to inflation
2) The process of moving sums of money into the future
3) The practice of saving money without earning any interest
4) The calculation of a present sum of money based on future values
(FVs) - Correct Answer - The process of moving sums of money into the
future
Why is the future value (FV) of a lump sum higher than its present value
(PV)?
1) Because future money is free from risk
2) Because money grows over time due to interest earned
3) Because the purchasing power of money increases over time
4) Because money has a constant value through time - Correct Answer -
Because money grows over time due to interest earned
What does the present value interest factor (PVIF) represent?
1) The future value (FV) of an investment today
pg. 4
