WGU - D775 ACTUAL TEST EXAM REVIEW
FINAL PAPER 2026 GUARANTEED TO PASS
⫸ Which activity describes capital raising in business finance?
Answer: Securing funding for business operations and projects
⫸ Which finance activity involves the creation, circulation, and
management of money? Answer: Setting monetary policy
⫸ What is common stock? Answer: A share of ownership in a firm
with voting rights
⫸ What is a characteristic of preferred stock? Answer: Fixed
dividends
⫸ What is the purpose of bonds from the perspective of issuers?
Answer: To raise capital without diluting ownership
⫸ Which type of bonds are considered junk bonds? Answer:
Speculative bonds
⫸ Which type of investment vehicle is uniquely used for retirement
savings? Answer: 401k plans
,⫸ What is true about options in financial derivatives? 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? Answer: By
making large-scale investments that reduce transaction costs
⫸ What is an initial public offering (IPO)? Answer: The first sale of a
company's stock to the public
⫸ What is an example of a secondary market activity? Answer: The
trading of stocks on the New York Stock Exchange
⫸ What are the two main types of financial markets based on their
functions? Answer: Primary markets and secondary markets
⫸ What is a role of financial regulators? Answer: Ensuring fair and
transparent markets
⫸ What are depository institutions? Answer: Institutions that accept
deposits and provide loans
⫸ What is the primary source of revenue for depository institutions?
Answer: Interest income from loans
⫸ How does rising Consumer Price Index (CPI) affect businesses?
Answer: It indicates increased costs for raw materials and labor.
, ⫸ How can companies demonstrate a commitment to corporate social
responsibility (CSR)? Answer: Supporting education and healthcare
initiatives
⫸ What is the impact of integrating environmental, social, and
governance (ESG) criteria into investment decisions? Answer:
Promoting sustainable and ethical practices
⫸ Which role do ethical considerations play in addressing agency
problems? Answer: Aligning managers' goals with shareholders'
interests
⫸ What is the purpose of using financial ratios for investors? Answer:
To evaluate the company's potential for return on investment
⫸ How do financial ratios help in comparing companies? Answer: By
providing a standardized basis for performance evaluation
⫸ How do financial ratios aid in performance benchmarking?
Answer: They allow comparison with industry standards and
competitors.
⫸ What do profitability ratios indicate? Answer: Earnings relative to
revenue
⫸ What does the current ratio evaluate? Answer: Short-term liquidity
FINAL PAPER 2026 GUARANTEED TO PASS
⫸ Which activity describes capital raising in business finance?
Answer: Securing funding for business operations and projects
⫸ Which finance activity involves the creation, circulation, and
management of money? Answer: Setting monetary policy
⫸ What is common stock? Answer: A share of ownership in a firm
with voting rights
⫸ What is a characteristic of preferred stock? Answer: Fixed
dividends
⫸ What is the purpose of bonds from the perspective of issuers?
Answer: To raise capital without diluting ownership
⫸ Which type of bonds are considered junk bonds? Answer:
Speculative bonds
⫸ Which type of investment vehicle is uniquely used for retirement
savings? Answer: 401k plans
,⫸ What is true about options in financial derivatives? 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? Answer: By
making large-scale investments that reduce transaction costs
⫸ What is an initial public offering (IPO)? Answer: The first sale of a
company's stock to the public
⫸ What is an example of a secondary market activity? Answer: The
trading of stocks on the New York Stock Exchange
⫸ What are the two main types of financial markets based on their
functions? Answer: Primary markets and secondary markets
⫸ What is a role of financial regulators? Answer: Ensuring fair and
transparent markets
⫸ What are depository institutions? Answer: Institutions that accept
deposits and provide loans
⫸ What is the primary source of revenue for depository institutions?
Answer: Interest income from loans
⫸ How does rising Consumer Price Index (CPI) affect businesses?
Answer: It indicates increased costs for raw materials and labor.
, ⫸ How can companies demonstrate a commitment to corporate social
responsibility (CSR)? Answer: Supporting education and healthcare
initiatives
⫸ What is the impact of integrating environmental, social, and
governance (ESG) criteria into investment decisions? Answer:
Promoting sustainable and ethical practices
⫸ Which role do ethical considerations play in addressing agency
problems? Answer: Aligning managers' goals with shareholders'
interests
⫸ What is the purpose of using financial ratios for investors? Answer:
To evaluate the company's potential for return on investment
⫸ How do financial ratios help in comparing companies? Answer: By
providing a standardized basis for performance evaluation
⫸ How do financial ratios aid in performance benchmarking?
Answer: They allow comparison with industry standards and
competitors.
⫸ What do profitability ratios indicate? Answer: Earnings relative to
revenue
⫸ What does the current ratio evaluate? Answer: Short-term liquidity
