WGU D076 OBJECTIVE ASSESSMENT
AND PRE ASSESSMENT FINAL EXAM
2 LATEST VERSIONS (VERSION A
AND B) ACTUAL EXAM
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? -
ANSWERBusiness finance
What is the primary difference between finance and accounting? - ANSWERFinance
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? - ANSWERInvestments
An area of finance that deals with investment allocation and asset pricing. -
ANSWERInvestments
An area of finance that involves organizations that accept deposits, offer investment
products, loan money, or broker financial transactions. - ANSWERFinancial Institutions
An area of finance that involves activities used to increase shareholder wealth. -
ANSWERCorporate Finance.
What is the primary aim of personal finance goals? - ANSWERTo maximize satisfaction
from products purchased and services obtained
What should be the main question a firm asks when considering any investment
decision? - ANSWERDo the benefits of this investment outweigh the costs?
What is the primary goal of the financial manager of a firm? - ANSWERTo 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? - ANSWERmaking
investment decisions,
making financing decisions, and
managing working capital.
Who is the highest ranking officer in corporate finance? - ANSWERCFO, Chief Financial
Officer
,What does the CFO do? - ANSWERThe 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? - ANSWERMaking investment decisions
Which financial career focuses on investing capital into firms whose shares are not
currently sold on any public stock exchange? - ANSWERPrivate equity
Which task does a financial manager perform when choosing to obtain a loan to
purchase a piece of equipment for a new project? - ANSWERMaking financing
decisions
What are the three most important types of securities? - ANSWERTreasury, Corporate,
and Stocks
Why does the SEC oversee Financial Markets? - ANSWERTo protect Investors
What are the purposes of financial markets? - ANSWERTo provide liquidity and
determine prices
In which financial market are securities such as stocks and bonds are traded after their
initial issuance? - ANSWERSecondary market
What kind of market primarily allows institutions to borrow and lend in the short term? -
ANSWERMoney 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? - ANSWERPrimary market
What is a depository institution? - ANSWERAn institution that accepts and pays interest
on deposits of money, as well as extends loans
What is the primary role of financial institutions? - ANSWERTo 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? - ANSWERInvestment bank
Which type of financial institution deals mainly with providing for retirement through
employers? - ANSWERPension fund
How do insurance companies pay policyholders when a claim is made? -
ANSWERThey 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? - ANSWERCentral bank
What are the three types of economic indicators? - ANSWERLeading, Lagging, and
coincident
Unemployment rate is which type of economic indicator? - ANSWERLagging
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? - ANSWERTo
regulate inflation and unemployment
What would an inverted yield curve signal? - ANSWERIt may indicate an economic
downturn.
In what way are coincident indicators useful? - ANSWERThey 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? -
ANSWERTo protect investors
Which type of financial institution provides individuals and firms access to financial
markets? - ANSWERInvestment 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? - ANSWERPrivate equity
Yield curve is which type of economic indicator? - ANSWERLeading
Which type of error would result in a set repercussion or penalty given by the
government? - ANSWERLegal
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? - ANSWERMoral
What characterizes an ethical action? - ANSWERAn ethical action is based on accepted
standards of conduct.
AND PRE ASSESSMENT FINAL EXAM
2 LATEST VERSIONS (VERSION A
AND B) ACTUAL EXAM
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? -
ANSWERBusiness finance
What is the primary difference between finance and accounting? - ANSWERFinance
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? - ANSWERInvestments
An area of finance that deals with investment allocation and asset pricing. -
ANSWERInvestments
An area of finance that involves organizations that accept deposits, offer investment
products, loan money, or broker financial transactions. - ANSWERFinancial Institutions
An area of finance that involves activities used to increase shareholder wealth. -
ANSWERCorporate Finance.
What is the primary aim of personal finance goals? - ANSWERTo maximize satisfaction
from products purchased and services obtained
What should be the main question a firm asks when considering any investment
decision? - ANSWERDo the benefits of this investment outweigh the costs?
What is the primary goal of the financial manager of a firm? - ANSWERTo 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? - ANSWERmaking
investment decisions,
making financing decisions, and
managing working capital.
Who is the highest ranking officer in corporate finance? - ANSWERCFO, Chief Financial
Officer
,What does the CFO do? - ANSWERThe 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? - ANSWERMaking investment decisions
Which financial career focuses on investing capital into firms whose shares are not
currently sold on any public stock exchange? - ANSWERPrivate equity
Which task does a financial manager perform when choosing to obtain a loan to
purchase a piece of equipment for a new project? - ANSWERMaking financing
decisions
What are the three most important types of securities? - ANSWERTreasury, Corporate,
and Stocks
Why does the SEC oversee Financial Markets? - ANSWERTo protect Investors
What are the purposes of financial markets? - ANSWERTo provide liquidity and
determine prices
In which financial market are securities such as stocks and bonds are traded after their
initial issuance? - ANSWERSecondary market
What kind of market primarily allows institutions to borrow and lend in the short term? -
ANSWERMoney 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? - ANSWERPrimary market
What is a depository institution? - ANSWERAn institution that accepts and pays interest
on deposits of money, as well as extends loans
What is the primary role of financial institutions? - ANSWERTo 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? - ANSWERInvestment bank
Which type of financial institution deals mainly with providing for retirement through
employers? - ANSWERPension fund
How do insurance companies pay policyholders when a claim is made? -
ANSWERThey 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? - ANSWERCentral bank
What are the three types of economic indicators? - ANSWERLeading, Lagging, and
coincident
Unemployment rate is which type of economic indicator? - ANSWERLagging
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? - ANSWERTo
regulate inflation and unemployment
What would an inverted yield curve signal? - ANSWERIt may indicate an economic
downturn.
In what way are coincident indicators useful? - ANSWERThey 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? -
ANSWERTo protect investors
Which type of financial institution provides individuals and firms access to financial
markets? - ANSWERInvestment 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? - ANSWERPrivate equity
Yield curve is which type of economic indicator? - ANSWERLeading
Which type of error would result in a set repercussion or penalty given by the
government? - ANSWERLegal
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? - ANSWERMoral
What characterizes an ethical action? - ANSWERAn ethical action is based on accepted
standards of conduct.
