WGU D775
WGU D775 INTRO TO BUSINESS FINANCE PRE-
ASSESSMENT REVIEW EXAM QUESTIONS AND ANSWERS
Which principle guides business finance to optimize
resource use? - correct answer Risk-return trade-off
What activity describes capital raising in business
finance? - correct answer Securing funding for business
operations and projects
Which finance activity involves the creation, circulation,
and management of money? - correct answer Setting
monetary policy
,WGU D775
What is a characteristic of preferred stock? - correct answer
Fixed dividends
What is the purpose of bonds from the perspective of
issuers? - correct answer To raise capital without diluting
ownership
Which type of bonds are considered junk bonds? - correct
answer Speculative bonds
Which type of investment vehicle is uniquely used for
retirement savings? - correct answer 401(k)
What is true about options in financial derivatives? - correct
answer They give the buyer the right, but not the obligation
to buy or sell an asset
How do funds benefit from economies of scale? - correct
answer By making large-scale investments that reduce
transaction costs
, WGU D775
What is an initial public offering (IPO)? - correct answer The
first sale of a company's stock to the public
What is the trading of stocks on the NYSE? - correct answer
The secondary market where existing securities are
bought and sold among investors.
What are the two main types of financial markets based
on their functions? - correct answer Primary markets and
secondary markets.
What is a role of financial regulators? - correct answer
Ensuring fair and transparent markets.
What are depository institutions? - correct answer Institutions
that accept deposits and provide loans.
What is the primary source of revenue for depository
institutions? - correct answer Interest income from loans.
WGU D775 INTRO TO BUSINESS FINANCE PRE-
ASSESSMENT REVIEW EXAM QUESTIONS AND ANSWERS
Which principle guides business finance to optimize
resource use? - correct answer Risk-return trade-off
What activity describes capital raising in business
finance? - correct answer Securing funding for business
operations and projects
Which finance activity involves the creation, circulation,
and management of money? - correct answer Setting
monetary policy
,WGU D775
What is a characteristic of preferred stock? - correct answer
Fixed dividends
What is the purpose of bonds from the perspective of
issuers? - correct answer To raise capital without diluting
ownership
Which type of bonds are considered junk bonds? - correct
answer Speculative bonds
Which type of investment vehicle is uniquely used for
retirement savings? - correct answer 401(k)
What is true about options in financial derivatives? - correct
answer They give the buyer the right, but not the obligation
to buy or sell an asset
How do funds benefit from economies of scale? - correct
answer By making large-scale investments that reduce
transaction costs
, WGU D775
What is an initial public offering (IPO)? - correct answer The
first sale of a company's stock to the public
What is the trading of stocks on the NYSE? - correct answer
The secondary market where existing securities are
bought and sold among investors.
What are the two main types of financial markets based
on their functions? - correct answer Primary markets and
secondary markets.
What is a role of financial regulators? - correct answer
Ensuring fair and transparent markets.
What are depository institutions? - correct answer Institutions
that accept deposits and provide loans.
What is the primary source of revenue for depository
institutions? - correct answer Interest income from loans.
