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UNIT 2
What are the main services ottered by financial institu-
tions?
1. Deciding which assets to invest in to create wealth in the
future 4. Accepting a wide variety of deposits, ottering investment
products, providing loans, and brokering financial trans-
2. Soliciting charitable donations and then managing the actions
distribution of these funds
Correct! Financial institutions such as banks, insurance
3. Evaluating sources of funding for a business project, the companies, and mutual fund companies provide these
capital structure of a firm, or actions managers could take services.
to increase the value of the firm
4. Accepting a wide variety of deposits, ottering invest-
ment products, providing loans, and brokering financial
transactions
UNIT 2
What is the main objective of personal financial goals?
4. To maximize individual utility
1. To maximize stock investments
Correct! You set goals and act to increase your satisfaction
2. To maximize owner wealth
or happiness by taking care of necessities and achieving
priorities.
3. To maximize charity donations
4. To maximize individual utility
UNIT 2
Which task does the financial manager of a firm perform
2. Making financing decisions
that involves the issuance of new stocks and bonds?
Correct! Once investment decisions are made, a finan-
1. Deciding on accounting standards
, WGU D076 Finance Skills for Managers OA Prep Comprehensive Resource To Help You Ace 2026-2027 Includes
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2. Making financing decisions
cial manager considers ditterent possibilities of financing
3. Managing working capital sources for the investments. This may include issuing new
stocks and bonds.
4. Making investing decisions
UNIT 2
Why is understanding the definition of finance important
in managing personal finances?
1. It helps individuals act ethically with regard to finances.
3. It helps individuals compare the costs and benefits of
an action to determine whether to take that action.
2. It helps individuals understand legal issues related to
finance.
Correct! Any financial decision should make sense in terms
of its costs and benefits.
3. It helps individuals compare the costs and benefits of
an action to determine whether to take that action.
4. It allows individuals to find an investment with the
highest return possible.
UNIT 2
In which type of market would a company issue bonds or
stocks for the first time?
1. Dealer market 4. Primary market
2. Money market Correct! This is the purpose of a primary market.
3. Secondary market
4. Primary market
UNIT 2
Which type of financial institution is a mutual fund?
, WGU D076 Finance Skills for Managers OA Prep Comprehensive Resource To Help You Ace 2026-2027 Includes
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1. Federal institution
4. Investment institution
2. Contractual institution
Correct! Investment institutions provide individuals and
3. Depository institution
firms access to financial markets.
4. Investment institution
UNIT 2
Which financial institution specializes in managing and
administering retirement funds?
1. Mutual funds 4. Pension funds
2. Investment banks Correct! Pension funds specialize in retirement funds.
3. Private equity
4. Pension funds
UNIT 2
Which type of economic indicator is the consumer price
index?
1. Lagging indicator
1. Lagging indicator
Correct! CPI usually changes after the economy as a whole
2. Coincident indicator
changes.
3. Forecasting indicator
4. Leading indicator
UNIT 2
What does the term ethical refer to?
1. An idea or thing used as a measure, norm, or model in