WGU D775 EXAM PREP: QUESTIONS AND
ANSWERS 2026 FINAL PAPER.
◍ Finance.Answer:Managing assets, liabilities, and planning for
future growth.
◍ Personal Finance.Answer:Managing individual or household
money (budgeting, saving, investing).
◍ Public Finance.Answer:Government money management,
including taxes, spending, and debt.
◍ Business Finance / Corporate Finance.Answer:Managing company
money, including investments, funding, and risk.
◍ Capital Budgeting.Answer:Deciding which projects a company
should invest in.
◍ Cost of Capital.Answer:The return a company must earn to cover
the cost of funding a project.
◍ Financial Ratios.Answer:Comparisons of financial data to measure
performance.
,◍ Common Stock.Answer:Ownership in a company with voting
rights and potential dividends.
◍ Preferred Stock.Answer:Ownership with fixed dividends and
priority in asset claims, usually no voting rights.
◍ Capital Appreciation.Answer:Increase in an asset's value over time.
◍ Bonds.Answer:Loans made to companies or governments that must
be repaid with interest.
◍ Coupon Rate.Answer:The interest rate a bond pays to investors.
◍ Maturity.Answer:The date a bond's final payment is due.
◍ Corporate Bonds.Answer:Bonds issued by companies, usually
higher risk and higher return than government bonds.
◍ Municipal Bonds.Answer:Local or state government bonds, often
tax-exempt.
◍ Treasury Bonds.Answer:U.S. federal government bonds,
considered very low risk.
, ◍ Financial Derivatives.Answer:Contracts whose value is based on
another asset's price.
◍ Options.Answer:Contracts giving the right (not obligation) to
buy/sell at a set price before a date.
◍ Futures.Answer:Contracts requiring buying/selling at a set price on
a set date.
◍ Investment Funds.Answer:Pools of money from many investors
invested in a portfolio.
◍ Mutual Funds.Answer:Investment funds priced daily based on net
asset value (NAV).
◍ Exchange-Traded Funds (ETFs).Answer:Investment funds traded
like stocks.
◍ Hedge Funds.Answer:High-risk funds for wealthy or institutional
investors.
◍ Pension Funds.Answer:Retirement savings invested for long-term
growth.
◍ Public Markets.Answer:Securities traded openly on exchanges.
ANSWERS 2026 FINAL PAPER.
◍ Finance.Answer:Managing assets, liabilities, and planning for
future growth.
◍ Personal Finance.Answer:Managing individual or household
money (budgeting, saving, investing).
◍ Public Finance.Answer:Government money management,
including taxes, spending, and debt.
◍ Business Finance / Corporate Finance.Answer:Managing company
money, including investments, funding, and risk.
◍ Capital Budgeting.Answer:Deciding which projects a company
should invest in.
◍ Cost of Capital.Answer:The return a company must earn to cover
the cost of funding a project.
◍ Financial Ratios.Answer:Comparisons of financial data to measure
performance.
,◍ Common Stock.Answer:Ownership in a company with voting
rights and potential dividends.
◍ Preferred Stock.Answer:Ownership with fixed dividends and
priority in asset claims, usually no voting rights.
◍ Capital Appreciation.Answer:Increase in an asset's value over time.
◍ Bonds.Answer:Loans made to companies or governments that must
be repaid with interest.
◍ Coupon Rate.Answer:The interest rate a bond pays to investors.
◍ Maturity.Answer:The date a bond's final payment is due.
◍ Corporate Bonds.Answer:Bonds issued by companies, usually
higher risk and higher return than government bonds.
◍ Municipal Bonds.Answer:Local or state government bonds, often
tax-exempt.
◍ Treasury Bonds.Answer:U.S. federal government bonds,
considered very low risk.
, ◍ Financial Derivatives.Answer:Contracts whose value is based on
another asset's price.
◍ Options.Answer:Contracts giving the right (not obligation) to
buy/sell at a set price before a date.
◍ Futures.Answer:Contracts requiring buying/selling at a set price on
a set date.
◍ Investment Funds.Answer:Pools of money from many investors
invested in a portfolio.
◍ Mutual Funds.Answer:Investment funds priced daily based on net
asset value (NAV).
◍ Exchange-Traded Funds (ETFs).Answer:Investment funds traded
like stocks.
◍ Hedge Funds.Answer:High-risk funds for wealthy or institutional
investors.
◍ Pension Funds.Answer:Retirement savings invested for long-term
growth.
◍ Public Markets.Answer:Securities traded openly on exchanges.
