Page 1 of 44
D076WGU EXAM| WGU D076 REAL EXAM
QUESTIONS WITH CORRECT ANSWERS TESTED
AND APPROVED!!!
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
, Page 2 of 44
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
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
, Page 3 of 44
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
decisionmaking 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
, Page 4 of 44
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.
D076WGU EXAM| WGU D076 REAL EXAM
QUESTIONS WITH CORRECT ANSWERS TESTED
AND APPROVED!!!
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
, Page 2 of 44
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
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
, Page 3 of 44
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
decisionmaking 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
, Page 4 of 44
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.
