WGU D076 FINANCE SKILLS FOR MANAGERS
COMPREHENSIVE STUDY GUIDE WITH
SOLUTIONS
◉ Investment bank
Answer: A large corporation is looking to merge with another large
corporation. Which financial institution can help them do this?
◉ Pension fund
Answer: Which type of financial institution deals mainly with
providing for retirement through employers?
◉ They use returns from stocks and bonds.
Answer: How do insurance companies pay policyholders when a
claim is made?
◉ Central bank
Answer: Which financial institution ensures that a nation's economy
remains healthy by controlling the amount of money circulating in
the economy?
◉ Leading, Lagging, and coincident
,Answer: What are the three types of economic indicators?
◉ Lagging
Answer: Unemployment rate is which type of economic indicator?
◉ To regulate inflation and unemployment
Answer: 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?
◉ It may indicate an economic downturn.
Answer: What would an inverted yield curve signal?
◉ They are analyzed during economic shifts to provide information
about the current state of the economy.
Answer: In what way are coincident indicators useful?
◉ To protect investors
Answer: Which responsibility is a focus of the U.S. Securities and
Exchange Commission?
◉ Investment institutions
,Answer: Which type of financial institution provides individuals and
firms access to financial markets?
◉ Private equity
Answer: 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?
◉ Leading
Answer: Yield curve is which type of economic indicator?
◉ Legal
Answer: Which type of error would result in a set repercussion or
penalty given by the government?
◉ Moral
Answer: 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?
◉ An ethical action is based on accepted standards of conduct.
Answer: What characterizes an ethical action?
◉ Moral
Answer: Which term reflects a person's beliefs about right and
wrong, good and bad, or just and unjust?
◉ Accounting
Answer: The system of recording, reporting, and summarizing past
financial information and transactions.
◉ Accounts Receivable Turnover (AR Turnover)
Answer: An activity ratio found by credit sales divided by accounts
receivable.
◉ Activity Ratios
Answer: A category of ratios that measure how well a company uses
its assets to generate sales or cash, showing the firm's operational
efficiency and profitability.
COMPREHENSIVE STUDY GUIDE WITH
SOLUTIONS
◉ Investment bank
Answer: A large corporation is looking to merge with another large
corporation. Which financial institution can help them do this?
◉ Pension fund
Answer: Which type of financial institution deals mainly with
providing for retirement through employers?
◉ They use returns from stocks and bonds.
Answer: How do insurance companies pay policyholders when a
claim is made?
◉ Central bank
Answer: Which financial institution ensures that a nation's economy
remains healthy by controlling the amount of money circulating in
the economy?
◉ Leading, Lagging, and coincident
,Answer: What are the three types of economic indicators?
◉ Lagging
Answer: Unemployment rate is which type of economic indicator?
◉ To regulate inflation and unemployment
Answer: 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?
◉ It may indicate an economic downturn.
Answer: What would an inverted yield curve signal?
◉ They are analyzed during economic shifts to provide information
about the current state of the economy.
Answer: In what way are coincident indicators useful?
◉ To protect investors
Answer: Which responsibility is a focus of the U.S. Securities and
Exchange Commission?
◉ Investment institutions
,Answer: Which type of financial institution provides individuals and
firms access to financial markets?
◉ Private equity
Answer: 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?
◉ Leading
Answer: Yield curve is which type of economic indicator?
◉ Legal
Answer: Which type of error would result in a set repercussion or
penalty given by the government?
◉ Moral
Answer: 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?
◉ An ethical action is based on accepted standards of conduct.
Answer: What characterizes an ethical action?
◉ Moral
Answer: Which term reflects a person's beliefs about right and
wrong, good and bad, or just and unjust?
◉ Accounting
Answer: The system of recording, reporting, and summarizing past
financial information and transactions.
◉ Accounts Receivable Turnover (AR Turnover)
Answer: An activity ratio found by credit sales divided by accounts
receivable.
◉ Activity Ratios
Answer: A category of ratios that measure how well a company uses
its assets to generate sales or cash, showing the firm's operational
efficiency and profitability.
