FINAL EXAMINATION PAPER dd dd
dd WGU C201 BUSINESS ACUMEN EXAM PREP
dd dd dd dd dd
STUDENT NAME: ________________________________
dd dd DATE: _____________ dd
COURSE: Business Acumen Financial Analysis
dd dd dd dd TIME: _____________ dd
EXAM CODE: WGU C201 BUSINESS ACUMEN EXAM PREP
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-101
EXAM INSTRUCTIONS:
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1. Print your full name and date clearly in the header above.
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2. This exam booklet contains both Test Questions (Part I) and Verified Solutions (Part II).
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3. Answer all multiple-choice questions clearly. Double-check your work.
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4. Do not break the seal or open this booklet until instructed to do so by the proctor.
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Q1. Understand the financial system.
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[Verified Solution]: The financial system is the process by which funds are transferred between those
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having excess funds (savers) and those needing additional funds (users). Savers and users are individual
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s, businesses, and governments. Savers expect to earn a rate of return in exchange for the use of their f
dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd
unds. Financial markets, financial institutions, and financial instruments (securities) make up the financi
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al system. Although direct transfers are possible, most funds flow from savers to users through the finan
dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd
cial markets or financial institutions, such as commercial banks. A well-
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functioning financial system is critical to the overall health of a nation's economy
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Q2. What is the financial system?
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[Verified Solution]: The financial system is the process by which funds are transferred between those
dd dddd dd dd dd dd dd dd dd dd dd dd dd dd dd
having excess funds (savers) and those needing additional funds (users).
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Q3. In the financial system, who are the borrowers and who are the savers?
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[Verified Solution]: Savers and borrowers are individuals, businesses, and governments. Generally, ind
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ividuals are net savers, meaning they spend less than they make, whereas businesses and governments a
dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd
re net borrowers
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Q4. List the two most common ways in which funds are transferred between borrowers and s
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avers.
[Verified Solution]: The two most common ways funds are transferred are through the financial marke
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ts and through financial institutions.
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, Q5. Discuss financial markets
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[Verified Solution]: A financial market is a market where securities are bought and sold. The primary
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market for securities serves businesses and governments that want to sell new security issues to raise fu
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nds. Securities are sold in the primary market either through an open auction or via a process called un
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derwriting. The secondary market handles transactions of previously issued securities between investors.
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dThe New York Stock Exchange is a secondary market. The business or government that issued the secu
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rity is not directly involved in secondary market transactions. In terms of the dollar value of trading vol
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ume, the secondary market is about four to five times larger than the primary market
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Q6. What is a financial market?
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[Verified Solution]: A financial market is a market in which securities are issued and traded
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Q7. Distinguish between a primary and a secondary financial market
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[Verified Solution]: The primary market for securities serves businesses and governments that want to
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sell new security issues to raise funds. The secondary market handles transactions of previously issued s
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ecurities between investors. dd dd
Q8. Briefly explain the role of financial institutions in the sale of securities.
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[Verified Solution]: Financial institutions purchase new securities issues from corporations or state and
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local governments and then resell the securities to investors. The institutions charge a fee for their servi
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ces.
Q9. Understand the stock markets
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[Verified Solution]: The best- dd dddd dd
known financial markets are the stock exchanges. They exist throughout the world. The two largest—
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the New York Stock Exchange and NASDAQ—
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are located in the United States. The NYSE is bigger, measured in terms of the total value of stock trad
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ed. Larger and betterknown companies dominate the NYSE. Buy and sell orders are transmitted to the t
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rading floor for execution. The NASDAQ stock market is an electronic market in which buy and sell or
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ders are entered into a computerized communication system for execution. Most of the world's major st
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ock markets today use similar electronic trading systems
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Q10. What are the world's two largest stock markets?
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[Verified Solution]: The world's two largest stock markets are the New York Stock Exchange (NYSE)
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dand the NASDAQ.
dd dd
dd WGU C201 BUSINESS ACUMEN EXAM PREP
dd dd dd dd dd
STUDENT NAME: ________________________________
dd dd DATE: _____________ dd
COURSE: Business Acumen Financial Analysis
dd dd dd dd TIME: _____________ dd
EXAM CODE: WGU C201 BUSINESS ACUMEN EXAM PREP
dd dd dd dd dd dd dd
-101
EXAM INSTRUCTIONS:
dd
1. Print your full name and date clearly in the header above.
dd dd dd dd dd dd dd dd dd dd dd
2. This exam booklet contains both Test Questions (Part I) and Verified Solutions (Part II).
dd dd dd dd dd dd dd dd dd dd dd dd dd dd
3. Answer all multiple-choice questions clearly. Double-check your work.
dd dd dd dd dd dd dd dd
4. Do not break the seal or open this booklet until instructed to do so by the proctor.
dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd
Q1. Understand the financial system.
dddd dd dd dd
[Verified Solution]: The financial system is the process by which funds are transferred between those
dd dddd dd dd dd dd dd dd dd dd dd dd dd dd dd
having excess funds (savers) and those needing additional funds (users). Savers and users are individual
dd dd dd dd dd dd dd dd dd dd dd dd dd dd
s, businesses, and governments. Savers expect to earn a rate of return in exchange for the use of their f
dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd
unds. Financial markets, financial institutions, and financial instruments (securities) make up the financi
dd dd dd dd dd dd dd dd dd dd dd dd
al system. Although direct transfers are possible, most funds flow from savers to users through the finan
dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd
cial markets or financial institutions, such as commercial banks. A well-
dd dd dd dd dd dd dd dd dd dd
functioning financial system is critical to the overall health of a nation's economy
dd dd dd dd dd dd dd dd dd dd dd dd
Q2. What is the financial system?
dddd dd dd dd dd
[Verified Solution]: The financial system is the process by which funds are transferred between those
dd dddd dd dd dd dd dd dd dd dd dd dd dd dd dd
having excess funds (savers) and those needing additional funds (users).
dd dd dd dd dd dd dd dd dd
Q3. In the financial system, who are the borrowers and who are the savers?
dddd dd dd dd dd dd dd dd dd dd dd dd dd
[Verified Solution]: Savers and borrowers are individuals, businesses, and governments. Generally, ind
dd dddd dd dd dd dd dd dd dd dd dd
ividuals are net savers, meaning they spend less than they make, whereas businesses and governments a
dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd
re net borrowers
dd dd
Q4. List the two most common ways in which funds are transferred between borrowers and s
dddd dd dd dd dd dd dd dd dd dd dd dd dd dd dd
avers.
[Verified Solution]: The two most common ways funds are transferred are through the financial marke
dd dddd dd dd dd dd dd dd dd dd dd dd dd dd
ts and through financial institutions.
dd dd dd dd
, Q5. Discuss financial markets
dddd dd dd
[Verified Solution]: A financial market is a market where securities are bought and sold. The primary
dd dddd dd dd dd dd dd dd dd dd dd dd dd dd dd dd
market for securities serves businesses and governments that want to sell new security issues to raise fu
dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd
nds. Securities are sold in the primary market either through an open auction or via a process called un
dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd
derwriting. The secondary market handles transactions of previously issued securities between investors.
dd dd dd dd dd dd dd dd dd dd dd d
dThe New York Stock Exchange is a secondary market. The business or government that issued the secu
dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd
rity is not directly involved in secondary market transactions. In terms of the dollar value of trading vol
dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd
ume, the secondary market is about four to five times larger than the primary market
dd dd dd dd dd dd dd dd dd dd dd dd dd dd
Q6. What is a financial market?
dddd dd dd dd dd
[Verified Solution]: A financial market is a market in which securities are issued and traded
dd dddd dd dd dd dd dd dd dd dd dd dd dd dd
Q7. Distinguish between a primary and a secondary financial market
dddd dd dd dd dd dd dd dd dd
[Verified Solution]: The primary market for securities serves businesses and governments that want to
dd dddd dd dd dd dd dd dd dd dd dd dd dd dd
sell new security issues to raise funds. The secondary market handles transactions of previously issued s
dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd
ecurities between investors. dd dd
Q8. Briefly explain the role of financial institutions in the sale of securities.
dddd dd dd dd dd dd dd dd dd dd dd dd
[Verified Solution]: Financial institutions purchase new securities issues from corporations or state and
dd dddd dd dd dd dd dd dd dd dd dd dd
local governments and then resell the securities to investors. The institutions charge a fee for their servi
dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd
ces.
Q9. Understand the stock markets
dddd dd dd dd
[Verified Solution]: The best- dd dddd dd
known financial markets are the stock exchanges. They exist throughout the world. The two largest—
dd dd dd dd dd dd dd dd dd dd dd dd dd dd
the New York Stock Exchange and NASDAQ—
dd dd dd dd dd dd
are located in the United States. The NYSE is bigger, measured in terms of the total value of stock trad
dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd
ed. Larger and betterknown companies dominate the NYSE. Buy and sell orders are transmitted to the t
dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd
rading floor for execution. The NASDAQ stock market is an electronic market in which buy and sell or
dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd
ders are entered into a computerized communication system for execution. Most of the world's major st
dd dd dd dd dd dd dd dd dd dd dd dd dd dd dd
ock markets today use similar electronic trading systems
dd dd dd dd dd dd dd
Q10. What are the world's two largest stock markets?
dddd dd dd dd dd dd dd dd
[Verified Solution]: The world's two largest stock markets are the New York Stock Exchange (NYSE)
dd dddd dd dd dd dd dd dd dd dd dd dd dd dd d
dand the NASDAQ.
dd dd
