D775 Exam Questions with Correct Answers
Accounting
Recording and reporting past financial transactions.
Finance
Managing assets, liabilities, and planning for future growth.
Personal Finance
Managing individual or household money (budgeting, saving, investing).
Public Finance
Government money management, including taxes, spending, and debt.
Business Finance / Corporate Finance
Managing company money, including investments, funding, and risk.
Capital Budgeting
Deciding which projects a company should invest in.
Cost of Capital
The return a company must earn to cover the cost of funding a project.
Financial Ratios
Comparisons of financial data to measure performance.
Common Stock
Ownership in a company with voting rights and potential dividends.
Preferred Stock
,Ownership with fixed dividends and priority in asset claims, usually no voting rights.
Capital Appreciation
Increase in an asset's value over time.
Bonds
Loans made to companies or governments that must be repaid with interest.
Coupon Rate
The interest rate a bond pays to investors.
Maturity
The date a bond's final payment is due.
Corporate Bonds
Bonds issued by companies, usually higher risk and higher return than government bonds.
Municipal Bonds
Local or state government bonds, often tax-exempt.
Treasury Bonds
U.S. federal government bonds, considered very low risk.
Financial Derivatives
Contracts whose value is based on another asset's price.
Options
Contracts giving the right (not obligation) to buy/sell at a set price before a date.
Futures
, Contracts requiring buying/selling at a set price on a set date.
Investment Funds
Pools of money from many investors invested in a portfolio.
Mutual Funds
Investment funds priced daily based on net asset value (NAV).
Exchange-Traded Funds (ETFs)
Investment funds traded like stocks.
Hedge Funds
High-risk funds for wealthy or institutional investors.
Pension Funds
Retirement savings invested for long-term growth.
Public Markets
Securities traded openly on exchanges.
Private Markets
Securities traded privately, not on public exchanges.
Primary Market
Where new securities are sold for the first time (e.g., IPO).
Secondary Market
Where existing securities are traded between investors.
Dealer Market
Accounting
Recording and reporting past financial transactions.
Finance
Managing assets, liabilities, and planning for future growth.
Personal Finance
Managing individual or household money (budgeting, saving, investing).
Public Finance
Government money management, including taxes, spending, and debt.
Business Finance / Corporate Finance
Managing company money, including investments, funding, and risk.
Capital Budgeting
Deciding which projects a company should invest in.
Cost of Capital
The return a company must earn to cover the cost of funding a project.
Financial Ratios
Comparisons of financial data to measure performance.
Common Stock
Ownership in a company with voting rights and potential dividends.
Preferred Stock
,Ownership with fixed dividends and priority in asset claims, usually no voting rights.
Capital Appreciation
Increase in an asset's value over time.
Bonds
Loans made to companies or governments that must be repaid with interest.
Coupon Rate
The interest rate a bond pays to investors.
Maturity
The date a bond's final payment is due.
Corporate Bonds
Bonds issued by companies, usually higher risk and higher return than government bonds.
Municipal Bonds
Local or state government bonds, often tax-exempt.
Treasury Bonds
U.S. federal government bonds, considered very low risk.
Financial Derivatives
Contracts whose value is based on another asset's price.
Options
Contracts giving the right (not obligation) to buy/sell at a set price before a date.
Futures
, Contracts requiring buying/selling at a set price on a set date.
Investment Funds
Pools of money from many investors invested in a portfolio.
Mutual Funds
Investment funds priced daily based on net asset value (NAV).
Exchange-Traded Funds (ETFs)
Investment funds traded like stocks.
Hedge Funds
High-risk funds for wealthy or institutional investors.
Pension Funds
Retirement savings invested for long-term growth.
Public Markets
Securities traded openly on exchanges.
Private Markets
Securities traded privately, not on public exchanges.
Primary Market
Where new securities are sold for the first time (e.g., IPO).
Secondary Market
Where existing securities are traded between investors.
Dealer Market
