WGU D775 Exam Questions with Correct
Answers
Risk-return trade-off
A principle that guides business finance to optimize resource use.
Capital raising
Securing funding for business operations and projects.
Money management activity
Involves the creation, circulation, and management of money.
Common stock
A share of ownership in a firm with voting rights.
Preferred stock characteristic
Fixed dividends.
Purpose of bonds for issuers
To raise capital without diluting ownership.
Junk bonds
Speculative bonds.
Options in financial derivatives
They give the buyer the right, but not the obligation, to buy or sell an asset.
Economies of scale for funds
By making large-scale investments that reduce transaction costs.
, Initial public offering (IPO)
The first sale of a company's stock to the public.
Secondary market activity
The trading of stocks on the New York Stock Exchange.
Types of financial markets
Primary markets and secondary markets.
Role of financial regulators
Ensuring fair and transparent markets.
Depository institutions
Institutions that accept deposits and provide loans.
Primary source of revenue for depository institutions
Interest income from loans.
Rising Consumer Price Index (CPI) effect
It indicates increased costs for raw materials and labor.
Return on equity goals
Beating their return on equity goals for each quarter
Environmental, social, and governance (ESG) criteria
Impact of integrating ESG criteria into investment decisions
Long-term risks
Seeking long-term risks to protect stakeholders
Answers
Risk-return trade-off
A principle that guides business finance to optimize resource use.
Capital raising
Securing funding for business operations and projects.
Money management activity
Involves the creation, circulation, and management of money.
Common stock
A share of ownership in a firm with voting rights.
Preferred stock characteristic
Fixed dividends.
Purpose of bonds for issuers
To raise capital without diluting ownership.
Junk bonds
Speculative bonds.
Options in financial derivatives
They give the buyer the right, but not the obligation, to buy or sell an asset.
Economies of scale for funds
By making large-scale investments that reduce transaction costs.
, Initial public offering (IPO)
The first sale of a company's stock to the public.
Secondary market activity
The trading of stocks on the New York Stock Exchange.
Types of financial markets
Primary markets and secondary markets.
Role of financial regulators
Ensuring fair and transparent markets.
Depository institutions
Institutions that accept deposits and provide loans.
Primary source of revenue for depository institutions
Interest income from loans.
Rising Consumer Price Index (CPI) effect
It indicates increased costs for raw materials and labor.
Return on equity goals
Beating their return on equity goals for each quarter
Environmental, social, and governance (ESG) criteria
Impact of integrating ESG criteria into investment decisions
Long-term risks
Seeking long-term risks to protect stakeholders
