WGU D076 OBJECTIVE ASSESSMENT AND PRE ASSESSMENT
FINAL EXAM 2 LATEST VERSIONS (VERSION A AND B) ACTUAL
EXAM COMPLETE 300 QUESTIONS AND CORRECT DETAILED
ANSWERS (100% VERIFIED ANSWERS) |ALREADY GRADED A+
Which area of finance deals with sources of funding and the capital structure of
corporations and seeks to increase the value of a firm to its owners? - ANSWER:
Business finance
What is the primary difference between finance and accounting? - ANSWER: Finance
focuses on the future, while accounting is generally backward-looking.
Which subspecialty of finance primarily involves deciding which assets will create
more wealth and earn positive returns? - ANSWER: Investments
An area of finance that deals with investment allocation and asset pricing. -
ANSWER: Investments
An area of finance that involves organizations that accept deposits, offer investment
products, loan money, or broker financial transactions. - ANSWER: Financial
Institutions
An area of finance that involves activities used to increase shareholder wealth. -
ANSWER: Corporate Finance.
What is the primary aim of personal finance goals? - ANSWER: To maximize
satisfaction from products purchased and services obtained
What should be the main question a firm asks when considering any investment
decision? - ANSWER: Do the benefits of this investment outweigh the costs?
What is the primary goal of the financial manager of a firm? - ANSWER: To maximize
owner wealth
What are three main tasks that a financial manager of a firm does in order to achieve
the goal of the firm, which is to maximize shareholder wealth? - ANSWER: making
investment decisions,
making financing decisions, and
managing working capital.
Who is the highest ranking officer in corporate finance? - ANSWER: CFO, Chief
Financial Officer
,What does the CFO do? - ANSWER: The CFO is responsible for all the financial
decisions made by the firm. He or she serves as the CEO's right-hand person in all
money matters and oversees the financial analysis and decision-making of the firm.
Which task does a financial manager perform when assessing the costs and benefits
of potential projects? - ANSWER: Making investment decisions
Which financial career focuses on investing capital into firms whose shares are not
currently sold on any public stock exchange? - ANSWER: Private equity
Which task does a financial manager perform when choosing to obtain a loan to
purchase a piece of equipment for a new project? - ANSWER: Making financing
decisions
What are the three most important types of securities? - ANSWER: Treasury,
Corporate, and Stocks
Why does the SEC oversee Financial Markets? - ANSWER: To protect Investors
What are the purposes of financial markets? - ANSWER: To provide liquidity and
determine prices
In which financial market are securities such as stocks and bonds are traded after
their initial issuance? - ANSWER: Secondary market
What kind of market primarily allows institutions to borrow and lend in the short
term? - ANSWER: Money market
A local start-up company just hit its five-year anniversary and is planning an initial
public offering sometime this year. In order to issue public stock, which market will
the company use? - ANSWER: Primary market
What is a depository institution? - ANSWER: An institution that accepts and pays
interest on deposits of money, as well as extends loans
What is the primary role of financial institutions? - ANSWER: To conduct financial
transactions such as investments, loans, and deposits
A large corporation is looking to merge with another large corporation. Which
financial institution can help them do this? - ANSWER: Investment bank
Which type of financial institution deals mainly with providing for retirement
through employers? - ANSWER: Pension fund
How do insurance companies pay policyholders when a claim is made? - ANSWER:
They use returns from stocks and bonds.
, Which financial institution ensures that a nation's economy remains healthy by
controlling the amount of money circulating in the economy? - ANSWER: Central
bank
What are the three types of economic indicators? - ANSWER: Leading, Lagging, and
coincident
Unemployment rate is which type of economic indicator? - ANSWER: Lagging
The Federal Reserve sometimes adjusts the interest rate at which commercial banks
can borrow from it. What is the purpose of adjusting the interest rate? - ANSWER: To
regulate inflation and unemployment
What would an inverted yield curve signal? - ANSWER: It may indicate an economic
downturn.
In what way are coincident indicators useful? - ANSWER: They are analyzed during
economic shifts to provide information about the current state of the economy.
Which responsibility is a focus of the U.S. Securities and Exchange Commission? -
ANSWER: To protect investors
Which type of financial institution provides individuals and firms access to financial
markets? - ANSWER: Investment institutions
Which financial institution includes entities that receive money from institutional
investors and wealthy individuals to buy troubled companies to improve them and
earn returns by selling them or going public? - ANSWER: Private equity
Yield curve is which type of economic indicator? - ANSWER: Leading
Which type of error would result in a set repercussion or penalty given by the
government? - ANSWER: Legal
Lucas is a financial advisor working for Bullzai, Inc. He is faced with a dilemma. Bullzai
has started changing its practices in order to increase profit. As a financial advisor, he
is now supposed to suggest to clients to invest in portfolios that will not do as well as
the portfolios that Bullzai is invested in. This is an accepted practice done by other
businesses in the industry, and it complies with all standards set by the government.
However, Lucas knows that this practice is not in his clients' best interest. What type
of dilemma is Lucas facing? - ANSWER: Moral
What characterizes an ethical action? - ANSWER: An ethical action is based on
accepted standards of conduct.
Which term reflects a person's beliefs about right and wrong, good and bad, or just
and unjust? - ANSWER: Moral
FINAL EXAM 2 LATEST VERSIONS (VERSION A AND B) ACTUAL
EXAM COMPLETE 300 QUESTIONS AND CORRECT DETAILED
ANSWERS (100% VERIFIED ANSWERS) |ALREADY GRADED A+
Which area of finance deals with sources of funding and the capital structure of
corporations and seeks to increase the value of a firm to its owners? - ANSWER:
Business finance
What is the primary difference between finance and accounting? - ANSWER: Finance
focuses on the future, while accounting is generally backward-looking.
Which subspecialty of finance primarily involves deciding which assets will create
more wealth and earn positive returns? - ANSWER: Investments
An area of finance that deals with investment allocation and asset pricing. -
ANSWER: Investments
An area of finance that involves organizations that accept deposits, offer investment
products, loan money, or broker financial transactions. - ANSWER: Financial
Institutions
An area of finance that involves activities used to increase shareholder wealth. -
ANSWER: Corporate Finance.
What is the primary aim of personal finance goals? - ANSWER: To maximize
satisfaction from products purchased and services obtained
What should be the main question a firm asks when considering any investment
decision? - ANSWER: Do the benefits of this investment outweigh the costs?
What is the primary goal of the financial manager of a firm? - ANSWER: To maximize
owner wealth
What are three main tasks that a financial manager of a firm does in order to achieve
the goal of the firm, which is to maximize shareholder wealth? - ANSWER: making
investment decisions,
making financing decisions, and
managing working capital.
Who is the highest ranking officer in corporate finance? - ANSWER: CFO, Chief
Financial Officer
,What does the CFO do? - ANSWER: The CFO is responsible for all the financial
decisions made by the firm. He or she serves as the CEO's right-hand person in all
money matters and oversees the financial analysis and decision-making of the firm.
Which task does a financial manager perform when assessing the costs and benefits
of potential projects? - ANSWER: Making investment decisions
Which financial career focuses on investing capital into firms whose shares are not
currently sold on any public stock exchange? - ANSWER: Private equity
Which task does a financial manager perform when choosing to obtain a loan to
purchase a piece of equipment for a new project? - ANSWER: Making financing
decisions
What are the three most important types of securities? - ANSWER: Treasury,
Corporate, and Stocks
Why does the SEC oversee Financial Markets? - ANSWER: To protect Investors
What are the purposes of financial markets? - ANSWER: To provide liquidity and
determine prices
In which financial market are securities such as stocks and bonds are traded after
their initial issuance? - ANSWER: Secondary market
What kind of market primarily allows institutions to borrow and lend in the short
term? - ANSWER: Money market
A local start-up company just hit its five-year anniversary and is planning an initial
public offering sometime this year. In order to issue public stock, which market will
the company use? - ANSWER: Primary market
What is a depository institution? - ANSWER: An institution that accepts and pays
interest on deposits of money, as well as extends loans
What is the primary role of financial institutions? - ANSWER: To conduct financial
transactions such as investments, loans, and deposits
A large corporation is looking to merge with another large corporation. Which
financial institution can help them do this? - ANSWER: Investment bank
Which type of financial institution deals mainly with providing for retirement
through employers? - ANSWER: Pension fund
How do insurance companies pay policyholders when a claim is made? - ANSWER:
They use returns from stocks and bonds.
, Which financial institution ensures that a nation's economy remains healthy by
controlling the amount of money circulating in the economy? - ANSWER: Central
bank
What are the three types of economic indicators? - ANSWER: Leading, Lagging, and
coincident
Unemployment rate is which type of economic indicator? - ANSWER: Lagging
The Federal Reserve sometimes adjusts the interest rate at which commercial banks
can borrow from it. What is the purpose of adjusting the interest rate? - ANSWER: To
regulate inflation and unemployment
What would an inverted yield curve signal? - ANSWER: It may indicate an economic
downturn.
In what way are coincident indicators useful? - ANSWER: They are analyzed during
economic shifts to provide information about the current state of the economy.
Which responsibility is a focus of the U.S. Securities and Exchange Commission? -
ANSWER: To protect investors
Which type of financial institution provides individuals and firms access to financial
markets? - ANSWER: Investment institutions
Which financial institution includes entities that receive money from institutional
investors and wealthy individuals to buy troubled companies to improve them and
earn returns by selling them or going public? - ANSWER: Private equity
Yield curve is which type of economic indicator? - ANSWER: Leading
Which type of error would result in a set repercussion or penalty given by the
government? - ANSWER: Legal
Lucas is a financial advisor working for Bullzai, Inc. He is faced with a dilemma. Bullzai
has started changing its practices in order to increase profit. As a financial advisor, he
is now supposed to suggest to clients to invest in portfolios that will not do as well as
the portfolios that Bullzai is invested in. This is an accepted practice done by other
businesses in the industry, and it complies with all standards set by the government.
However, Lucas knows that this practice is not in his clients' best interest. What type
of dilemma is Lucas facing? - ANSWER: Moral
What characterizes an ethical action? - ANSWER: An ethical action is based on
accepted standards of conduct.
Which term reflects a person's beliefs about right and wrong, good and bad, or just
and unjust? - ANSWER: Moral
