WGU Business Acumen C201 - ch16 Exam
Reviewed Questions and Answers Latest
2025/2026 GRADED A+
Understanding the financial system - CORRECT ANSWER-Households, businesses,
government, financial institutions, and financial markets together form what is known
as the financial system.
Securities - CORRECT ANSWER-Also called financial instruments, securities represent
obligations on the part of the issuers, businesses, and governments, to provide the
purchasers with expected or stated returns on the funds invested or loaned.
Money market instruments - CORRECT ANSWER-Short-term debt securities issued by
corporations, financial institutions such as banks, and governments.
Bonds - CORRECT ANSWER-By selling bonds, the seller obtains long-term debt capital.
Bonds are sold by the U.S. Treasury, municipalities, and corporations.
Quality ratings for bonds - CORRECT ANSWER-Standard & Poor's and Moody's rate
corporate and municipal bonds with regard to risk. Higher risk bonds must pay higher
interest to attract investors.
Stock - CORRECT ANSWER-Corporations generate equity capital when they sell stock
and when stockholders actually own a piece of the corporation. Corporations may
issue, common stock, preferred stock, or convertible securities.
Reviewed Questions and Answers Latest
2025/2026 GRADED A+
Understanding the financial system - CORRECT ANSWER-Households, businesses,
government, financial institutions, and financial markets together form what is known
as the financial system.
Securities - CORRECT ANSWER-Also called financial instruments, securities represent
obligations on the part of the issuers, businesses, and governments, to provide the
purchasers with expected or stated returns on the funds invested or loaned.
Money market instruments - CORRECT ANSWER-Short-term debt securities issued by
corporations, financial institutions such as banks, and governments.
Bonds - CORRECT ANSWER-By selling bonds, the seller obtains long-term debt capital.
Bonds are sold by the U.S. Treasury, municipalities, and corporations.
Quality ratings for bonds - CORRECT ANSWER-Standard & Poor's and Moody's rate
corporate and municipal bonds with regard to risk. Higher risk bonds must pay higher
interest to attract investors.
Stock - CORRECT ANSWER-Corporations generate equity capital when they sell stock
and when stockholders actually own a piece of the corporation. Corporations may
issue, common stock, preferred stock, or convertible securities.
