D076 WGU FINANCE TEST GRADED A+
Business finance - ✔✔Which area of finance deals with sources of funding and the capital structure of
corporations and seeks to increase the value of a firm to its owners?
Finance focuses on the future, while accounting is generally backward-looking. - ✔✔What is the
primary difference between finance and accounting?
Investments - ✔✔Which subspecialty of finance primarily involves deciding which assets will create
more wealth and earn positive returns?
Investments - ✔✔An area of finance that deals with investment allocation and asset pricing.
Financial Institutions - ✔✔An area of finance that involves organizations that accept deposits, offer
investment products, loan money, or broker financial transactions.
Corporate Finance. - ✔✔An area of finance that involves activities used to increase shareholder wealth.
To maximize satisfaction from products purchased and services obtained - ✔✔What is the primary aim
of personal finance goals?
Do the benefits of this investment outweigh the costs? - ✔✔What should be the main question a firm
asks when considering any investment decision?
To maximize owner wealth - ✔✔What is the primary goal of the financial manager of a firm?
making investment decisions,
making financing decisions, and
,managing working capital. - ✔✔What are three main tasks that a financial manager of a firm does in
order to achieve the goal of the firm, which is to maximize shareholder wealth?
CFO, Chief Financial Officer - ✔✔Who is the highest ranking officer in corporate finance?
The CFO is responsible for all the financial decisions made by the firm. He or she serves as the CEO's
right-hand person in all money matters and oversees the financial analysis and decision-making of the
firm. - ✔✔What does the CFO do?
Making investment decisions - ✔✔Which task does a financial manager perform when assessing the
costs and benefits of potential projects?
Private equity - ✔✔Which financial career focuses on investing capital into firms whose shares are not
currently sold on any public stock exchange?
Making financing decisions - ✔✔Which task does a financial manager perform when choosing to obtain
a loan to purchase a piece of equipment for a new project?
Treasury, Corporate, and Stocks - ✔✔What are the three most important types of securities?
To protect Investors - ✔✔Why does the SEC oversee Financial Markets?
To provide liquidity and determine prices - ✔✔What are the purposes of financial markets?
Secondary market - ✔✔In which financial market are securities such as stocks and bonds are traded
after their initial issuance?
, Money market - ✔✔What kind of market primarily allows institutions to borrow and lend in the short
term?
Primary market - ✔✔A local start-up company just hit its five-year anniversary and is planning an initial
public offering sometime this year. In order to issue public stock, which market will the company use?
An institution that accepts and pays interest on deposits of money, as well as extends loans - ✔✔What
is a depository institution?
To conduct financial transactions such as investments, loans, and deposits - ✔✔What is the primary
role of financial institutions?
Investment bank - ✔✔A large corporation is looking to merge with another large corporation. Which
financial institution can help them do this?
Pension fund - ✔✔Which type of financial institution deals mainly with providing for retirement
through employers?
They use returns from stocks and bonds. - ✔✔How do insurance companies pay policyholders when a
claim is made?
Central bank - ✔✔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 - ✔✔What are the three types of economic indicators?
Lagging - ✔✔Unemployment rate is which type of economic indicator?
Business finance - ✔✔Which area of finance deals with sources of funding and the capital structure of
corporations and seeks to increase the value of a firm to its owners?
Finance focuses on the future, while accounting is generally backward-looking. - ✔✔What is the
primary difference between finance and accounting?
Investments - ✔✔Which subspecialty of finance primarily involves deciding which assets will create
more wealth and earn positive returns?
Investments - ✔✔An area of finance that deals with investment allocation and asset pricing.
Financial Institutions - ✔✔An area of finance that involves organizations that accept deposits, offer
investment products, loan money, or broker financial transactions.
Corporate Finance. - ✔✔An area of finance that involves activities used to increase shareholder wealth.
To maximize satisfaction from products purchased and services obtained - ✔✔What is the primary aim
of personal finance goals?
Do the benefits of this investment outweigh the costs? - ✔✔What should be the main question a firm
asks when considering any investment decision?
To maximize owner wealth - ✔✔What is the primary goal of the financial manager of a firm?
making investment decisions,
making financing decisions, and
,managing working capital. - ✔✔What are three main tasks that a financial manager of a firm does in
order to achieve the goal of the firm, which is to maximize shareholder wealth?
CFO, Chief Financial Officer - ✔✔Who is the highest ranking officer in corporate finance?
The CFO is responsible for all the financial decisions made by the firm. He or she serves as the CEO's
right-hand person in all money matters and oversees the financial analysis and decision-making of the
firm. - ✔✔What does the CFO do?
Making investment decisions - ✔✔Which task does a financial manager perform when assessing the
costs and benefits of potential projects?
Private equity - ✔✔Which financial career focuses on investing capital into firms whose shares are not
currently sold on any public stock exchange?
Making financing decisions - ✔✔Which task does a financial manager perform when choosing to obtain
a loan to purchase a piece of equipment for a new project?
Treasury, Corporate, and Stocks - ✔✔What are the three most important types of securities?
To protect Investors - ✔✔Why does the SEC oversee Financial Markets?
To provide liquidity and determine prices - ✔✔What are the purposes of financial markets?
Secondary market - ✔✔In which financial market are securities such as stocks and bonds are traded
after their initial issuance?
, Money market - ✔✔What kind of market primarily allows institutions to borrow and lend in the short
term?
Primary market - ✔✔A local start-up company just hit its five-year anniversary and is planning an initial
public offering sometime this year. In order to issue public stock, which market will the company use?
An institution that accepts and pays interest on deposits of money, as well as extends loans - ✔✔What
is a depository institution?
To conduct financial transactions such as investments, loans, and deposits - ✔✔What is the primary
role of financial institutions?
Investment bank - ✔✔A large corporation is looking to merge with another large corporation. Which
financial institution can help them do this?
Pension fund - ✔✔Which type of financial institution deals mainly with providing for retirement
through employers?
They use returns from stocks and bonds. - ✔✔How do insurance companies pay policyholders when a
claim is made?
Central bank - ✔✔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 - ✔✔What are the three types of economic indicators?
Lagging - ✔✔Unemployment rate is which type of economic indicator?
