WGU D076 Objective Assessment V1 &V2 Finance Skills
for Managers questions & answers 2024
Version 1
Which type of financial institution is a mutual fund? - CORRECT
ANSWER-Investment institution
Which financial institution specializes in managing and administering
retirement funds? - CORRECT ANSWER-Pension funds
Which type of economic indicator is the consumer price index? -
CORRECT ANSWER-Lagging indicator
What does the term ethical refer to? - CORRECT ANSWER-The accepted
standards of conduct that guide a person's behavior
What are the main services offered by financial institutions? - CORRECT
ANSWER-Accepting a wide variety of deposits, offering investment
products, providing loans, and brokering financial transactions
What is the main objective of personal financial goals? - CORRECT
ANSWER-To maximize individual utility
,Which task does the financial manager of a firm perform that involves
the issuance of new stocks and bonds? - CORRECT ANSWER-Making
financing decisions
Why is understanding the definition of finance important in managing
personal finances? - CORRECT ANSWER-It helps individuals compare the
costs and benefits of an action to determine whether to take that
action.
In which type of market would a company issue bonds or stocks for the
first time? - CORRECT ANSWER-Primary market
A company's officers and board of directors are selling their stocks in
the firm at higher prices due to false accounting reports that made the
stock seem more valuable than it truly was. Which ethical issue is
occurring in this situation? - CORRECT ANSWER-Agency problem due to
conflicting interests
,Which area of finance involves deciding which assets to invest in to
create wealth in the future? - CORRECT ANSWER-Investments
What is the main goal of a firm? - CORRECT ANSWER-To maximize
owner wealth
What are financial managers doing if they evaluate whether it is worth
spending money on research and development for a new product? -
CORRECT ANSWER-Making an investment decision
Which type of financial market is where securities such as stocks and
bonds are traded after their initial issuance? - CORRECT ANSWER-The
secondary financial market
What type of financial institution is an insurance company? - CORRECT
ANSWER-Contractual
Which financial institution invests funds contributed by a company to
provide retirement funds for the company's employees? - CORRECT
ANSWER-Pension fund
Personal income is which type of economic indicator? - CORRECT
ANSWER-Coincident
, Which term refers to something that conforms with accepted standards
of conduct that guide a person's behavior? - CORRECT ANSWER-Ethical
What is the second step in finding a solution to an ethical dilemma? -
CORRECT ANSWER-Consider alternative courses of action
Which type of interest rate includes interest on interest in addition to
interest on the principal? - CORRECT ANSWER-Compound interest
How can agency problems be reduced through corporate control? -
CORRECT ANSWER-Executive compensation
What is the rate at which the average price level of particular goods
and services in an economy increases over a period of time? - CORRECT
ANSWER-Inflation rate
You signed an apartment contract today. You are going to pay $1,500 at
the beginning of each month for the next 12 months, starting today.
What type of cash flows is this contract? - CORRECT ANSWER-An
annuity due
What is the term for the return over the entire period that an investor
owns a financial security? - CORRECT ANSWER-Holding period return
for Managers questions & answers 2024
Version 1
Which type of financial institution is a mutual fund? - CORRECT
ANSWER-Investment institution
Which financial institution specializes in managing and administering
retirement funds? - CORRECT ANSWER-Pension funds
Which type of economic indicator is the consumer price index? -
CORRECT ANSWER-Lagging indicator
What does the term ethical refer to? - CORRECT ANSWER-The accepted
standards of conduct that guide a person's behavior
What are the main services offered by financial institutions? - CORRECT
ANSWER-Accepting a wide variety of deposits, offering investment
products, providing loans, and brokering financial transactions
What is the main objective of personal financial goals? - CORRECT
ANSWER-To maximize individual utility
,Which task does the financial manager of a firm perform that involves
the issuance of new stocks and bonds? - CORRECT ANSWER-Making
financing decisions
Why is understanding the definition of finance important in managing
personal finances? - CORRECT ANSWER-It helps individuals compare the
costs and benefits of an action to determine whether to take that
action.
In which type of market would a company issue bonds or stocks for the
first time? - CORRECT ANSWER-Primary market
A company's officers and board of directors are selling their stocks in
the firm at higher prices due to false accounting reports that made the
stock seem more valuable than it truly was. Which ethical issue is
occurring in this situation? - CORRECT ANSWER-Agency problem due to
conflicting interests
,Which area of finance involves deciding which assets to invest in to
create wealth in the future? - CORRECT ANSWER-Investments
What is the main goal of a firm? - CORRECT ANSWER-To maximize
owner wealth
What are financial managers doing if they evaluate whether it is worth
spending money on research and development for a new product? -
CORRECT ANSWER-Making an investment decision
Which type of financial market is where securities such as stocks and
bonds are traded after their initial issuance? - CORRECT ANSWER-The
secondary financial market
What type of financial institution is an insurance company? - CORRECT
ANSWER-Contractual
Which financial institution invests funds contributed by a company to
provide retirement funds for the company's employees? - CORRECT
ANSWER-Pension fund
Personal income is which type of economic indicator? - CORRECT
ANSWER-Coincident
, Which term refers to something that conforms with accepted standards
of conduct that guide a person's behavior? - CORRECT ANSWER-Ethical
What is the second step in finding a solution to an ethical dilemma? -
CORRECT ANSWER-Consider alternative courses of action
Which type of interest rate includes interest on interest in addition to
interest on the principal? - CORRECT ANSWER-Compound interest
How can agency problems be reduced through corporate control? -
CORRECT ANSWER-Executive compensation
What is the rate at which the average price level of particular goods
and services in an economy increases over a period of time? - CORRECT
ANSWER-Inflation rate
You signed an apartment contract today. You are going to pay $1,500 at
the beginning of each month for the next 12 months, starting today.
What type of cash flows is this contract? - CORRECT ANSWER-An
annuity due
What is the term for the return over the entire period that an investor
owns a financial security? - CORRECT ANSWER-Holding period return
