WGU D076 Exam Review (Latest 2024/ 2025 Update)
Finance Skills for Managers| Questions and Verified
Answers| 100% Correct| Grade A
Investments - ANSWERWhich area of finance involves deciding which assets to invest
in to create wealth in the future?
To maximize owner wealth - ANSWERWhat is the main goal of a firm?
Making an investment decision - ANSWERWhat are the financial managers doing if
they evaluate whether it is worth spending money on research and development for
a new product?
Secondary Financial Market - ANSWERWhich type of financial market is where
securities such as stocks and bonds are traded after their initial issuance?
Contractual - ANSWERWhat type of financial institution is an insurance company?
Pension Fund - ANSWERWhich financial institutions invest funds contributed by a
company to provide retirement funds for the company's employees?
Coincident - ANSWERPersonal income is which type of economic indicator?
Ethical - ANSWERWhich term refers to something that conforms with accepted
standards of conduct that guide a person's behavior?
Consider alternative courses of action - ANSWERWhat is the second step in finding a
solution to an ethical dilemma?
Executive compensation - ANSWERHow can agency problems be reduced through
corporate control?
Accepting a wide variety of deposits, offering investment products, providing loans,
and brokering financial transactions. - ANSWERWhat are the main services offered
by financial institutions?
To maximize individual utility. - ANSWERWhat is the main objective of personal
financial goals?
Making financing decisions - ANSWERWhich task does the financial manager of a
firm perform that involves the issuance of new stocks and bonds?
It helps individuals compare the costs and benefits of an action to determine
whether to take that action. - ANSWERWhy is understanding the definition of
finance important in managing personal finances?
, Primary Market - ANSWERIn which type of market would a company issue bonds or
stocks for the first time?
Investment institution - ANSWERWhich type of financial institution is a mutual fund?
Pension funds - ANSWERWhich financial institution specializes in managing and
administering retirement funds?
Lagging indicator - ANSWERWhich type of economic indicator is the consumer price
index?
The accepted standards of conduct that guide a person's behavior - ANSWERWhat
does the term ethical refer to?
Agency problems due to conflicting interests - ANSWERA company officers and board
of directors are selling their stocks in the firm at higher prices due to false accounting
reports that made the stock seem more valuable than it truly was. Which ethical
issue is occurring in this situation?
Annual percentage rate - ANSWERWhat is the name for the interest rate expressed
on an annual basis?
It is the minimum rate that a firm must surpass to accept a project - ANSWERWhy is
the required rate of return also known as the "hurdle rate"?
The rate at which the average price level of a basket of goods and services in an
economy increases - ANSWERWhat is the inflation rate?
Inflation and Opportunity Cost - ANSWERWhat does the risk-free rate indicate?
Based on the inflation rate, she should expect this stock to provide a return higher
than this for the associated risk. - ANSWERSuppose Sophia is considering a new stock
investment for her retirement account. This stock has significant risk, but is quite
popular in the market. Inflation for the next few years is expected to be 2-3% per
year, and the current U.S. Treasury rates are about 2%. How should she use this
information to decide what type of return she can expect from the stock?
Annuity - ANSWERTwenty years ago, Mateo started an investment account with
$2,000. He then invested $100 into the account every month at the end of each
month. Today, he has $46,528 in the same account. What is the term for the $100
monthly cash flows?
Present value - ANSWERLolo invested $30,000 today in an account that gives 3%
interest. Starting one year from today, she will be able to pull out little over $3,500 a
year. What does the $30,000 represent?
Finance Skills for Managers| Questions and Verified
Answers| 100% Correct| Grade A
Investments - ANSWERWhich area of finance involves deciding which assets to invest
in to create wealth in the future?
To maximize owner wealth - ANSWERWhat is the main goal of a firm?
Making an investment decision - ANSWERWhat are the financial managers doing if
they evaluate whether it is worth spending money on research and development for
a new product?
Secondary Financial Market - ANSWERWhich type of financial market is where
securities such as stocks and bonds are traded after their initial issuance?
Contractual - ANSWERWhat type of financial institution is an insurance company?
Pension Fund - ANSWERWhich financial institutions invest funds contributed by a
company to provide retirement funds for the company's employees?
Coincident - ANSWERPersonal income is which type of economic indicator?
Ethical - ANSWERWhich term refers to something that conforms with accepted
standards of conduct that guide a person's behavior?
Consider alternative courses of action - ANSWERWhat is the second step in finding a
solution to an ethical dilemma?
Executive compensation - ANSWERHow can agency problems be reduced through
corporate control?
Accepting a wide variety of deposits, offering investment products, providing loans,
and brokering financial transactions. - ANSWERWhat are the main services offered
by financial institutions?
To maximize individual utility. - ANSWERWhat is the main objective of personal
financial goals?
Making financing decisions - ANSWERWhich task does the financial manager of a
firm perform that involves the issuance of new stocks and bonds?
It helps individuals compare the costs and benefits of an action to determine
whether to take that action. - ANSWERWhy is understanding the definition of
finance important in managing personal finances?
, Primary Market - ANSWERIn which type of market would a company issue bonds or
stocks for the first time?
Investment institution - ANSWERWhich type of financial institution is a mutual fund?
Pension funds - ANSWERWhich financial institution specializes in managing and
administering retirement funds?
Lagging indicator - ANSWERWhich type of economic indicator is the consumer price
index?
The accepted standards of conduct that guide a person's behavior - ANSWERWhat
does the term ethical refer to?
Agency problems due to conflicting interests - ANSWERA company officers and board
of directors are selling their stocks in the firm at higher prices due to false accounting
reports that made the stock seem more valuable than it truly was. Which ethical
issue is occurring in this situation?
Annual percentage rate - ANSWERWhat is the name for the interest rate expressed
on an annual basis?
It is the minimum rate that a firm must surpass to accept a project - ANSWERWhy is
the required rate of return also known as the "hurdle rate"?
The rate at which the average price level of a basket of goods and services in an
economy increases - ANSWERWhat is the inflation rate?
Inflation and Opportunity Cost - ANSWERWhat does the risk-free rate indicate?
Based on the inflation rate, she should expect this stock to provide a return higher
than this for the associated risk. - ANSWERSuppose Sophia is considering a new stock
investment for her retirement account. This stock has significant risk, but is quite
popular in the market. Inflation for the next few years is expected to be 2-3% per
year, and the current U.S. Treasury rates are about 2%. How should she use this
information to decide what type of return she can expect from the stock?
Annuity - ANSWERTwenty years ago, Mateo started an investment account with
$2,000. He then invested $100 into the account every month at the end of each
month. Today, he has $46,528 in the same account. What is the term for the $100
monthly cash flows?
Present value - ANSWERLolo invested $30,000 today in an account that gives 3%
interest. Starting one year from today, she will be able to pull out little over $3,500 a
year. What does the $30,000 represent?
