WGU D076 | 292 QUESTIONS AND ANSWERS |
2025/2026 UPDATE | WITH COMPLETE SOLUTION!!
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? Answer -
Business finance
What is the primary difference between finance and accounting? Answer -
Finance focuses on the future, while accounting is generally backward-looking.
Which subspecialty of finance primarily involves deciding which assets will
create more wealth and earn positive returns? Answer - Investments
An area of finance that deals with investment allocation and asset pricing.
Answer - Investments
An area of finance that involves organizations that accept deposits, offer
investment products, loan money, or broker financial transactions. Answer -
Financial Institutions
An area of finance that involves activities used to increase shareholder wealth.
Answer - Corporate Finance.
What is the primary aim of personal finance goals? Answer - To maximize
satisfaction from products purchased and services obtained
,What should be the main question a firm asks when considering any
investment decision? Answer - Do the benefits of this investment outweigh
the costs?
What is the primary goal of the financial manager of a firm? Answer - To
maximize owner wealth
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? Answer
- making investment decisions,
making financing decisions, and
managing working capital.
Who is the highest ranking officer in corporate finance? Answer - CFO, Chief
Financial Officer
What does the CFO do? Answer - 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.
Which task does a financial manager perform when assessing the costs and
benefits of potential projects? Answer - Making investment decisions
Which financial career focuses on investing capital into firms whose shares are
not currently sold on any public stock exchange? Answer - Private equity
,Which task does a financial manager perform when choosing to obtain a loan
to purchase a piece of equipment for a new project? Answer - Making
financing decisions
What are the three most important types of securities? Answer - Treasury,
Corporate, and Stocks
Why does the SEC oversee Financial Markets? Answer - To protect Investors
What are the purposes of financial markets? Answer - To provide liquidity and
determine prices
In which financial market are securities such as stocks and bonds are traded
after their initial issuance? Answer - Secondary market
What kind of market primarily allows institutions to borrow and lend in the
short term? Answer - Money 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? Answer - Primary market
What is a depository institution? Answer - An institution that accepts and pays
interest on deposits of money, as well as extends loans
What is the primary role of financial institutions? Answer - To conduct financial
transactions such as investments, loans, and deposits
A large corporation is looking to merge with another large corporation. Which
financial institution can help them do this? Answer - Investment bank
, Which type of financial institution deals mainly with providing for retirement
through employers? Answer - Pension fund
How do insurance companies pay policyholders when a claim is made? Answer
- They use returns from stocks and bonds.
Which financial institution ensures that a nation's economy remains healthy by
controlling the amount of money circulating in the economy? Answer - Central
bank
What are the three types of economic indicators? Answer - Leading, Lagging,
and coincident
Unemployment rate is which type of economic indicator? Answer - Lagging
The Federal Reserve sometimes adjusts the interest rate at which commercial
banks can borrow from it. What is the purpose of adjusting the interest rate?
Answer - To regulate inflation and unemployment
What would an inverted yield curve signal? Answer - It may indicate an
economic downturn.
In what way are coincident indicators useful? Answer - They are analyzed
during economic shifts to provide information about the current state of the
economy.
Which responsibility is a focus of the U.S. Securities and Exchange Commission?
Answer - To protect investors
2025/2026 UPDATE | WITH COMPLETE SOLUTION!!
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? Answer -
Business finance
What is the primary difference between finance and accounting? Answer -
Finance focuses on the future, while accounting is generally backward-looking.
Which subspecialty of finance primarily involves deciding which assets will
create more wealth and earn positive returns? Answer - Investments
An area of finance that deals with investment allocation and asset pricing.
Answer - Investments
An area of finance that involves organizations that accept deposits, offer
investment products, loan money, or broker financial transactions. Answer -
Financial Institutions
An area of finance that involves activities used to increase shareholder wealth.
Answer - Corporate Finance.
What is the primary aim of personal finance goals? Answer - To maximize
satisfaction from products purchased and services obtained
,What should be the main question a firm asks when considering any
investment decision? Answer - Do the benefits of this investment outweigh
the costs?
What is the primary goal of the financial manager of a firm? Answer - To
maximize owner wealth
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? Answer
- making investment decisions,
making financing decisions, and
managing working capital.
Who is the highest ranking officer in corporate finance? Answer - CFO, Chief
Financial Officer
What does the CFO do? Answer - 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.
Which task does a financial manager perform when assessing the costs and
benefits of potential projects? Answer - Making investment decisions
Which financial career focuses on investing capital into firms whose shares are
not currently sold on any public stock exchange? Answer - Private equity
,Which task does a financial manager perform when choosing to obtain a loan
to purchase a piece of equipment for a new project? Answer - Making
financing decisions
What are the three most important types of securities? Answer - Treasury,
Corporate, and Stocks
Why does the SEC oversee Financial Markets? Answer - To protect Investors
What are the purposes of financial markets? Answer - To provide liquidity and
determine prices
In which financial market are securities such as stocks and bonds are traded
after their initial issuance? Answer - Secondary market
What kind of market primarily allows institutions to borrow and lend in the
short term? Answer - Money 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? Answer - Primary market
What is a depository institution? Answer - An institution that accepts and pays
interest on deposits of money, as well as extends loans
What is the primary role of financial institutions? Answer - To conduct financial
transactions such as investments, loans, and deposits
A large corporation is looking to merge with another large corporation. Which
financial institution can help them do this? Answer - Investment bank
, Which type of financial institution deals mainly with providing for retirement
through employers? Answer - Pension fund
How do insurance companies pay policyholders when a claim is made? Answer
- They use returns from stocks and bonds.
Which financial institution ensures that a nation's economy remains healthy by
controlling the amount of money circulating in the economy? Answer - Central
bank
What are the three types of economic indicators? Answer - Leading, Lagging,
and coincident
Unemployment rate is which type of economic indicator? Answer - Lagging
The Federal Reserve sometimes adjusts the interest rate at which commercial
banks can borrow from it. What is the purpose of adjusting the interest rate?
Answer - To regulate inflation and unemployment
What would an inverted yield curve signal? Answer - It may indicate an
economic downturn.
In what way are coincident indicators useful? Answer - They are analyzed
during economic shifts to provide information about the current state of the
economy.
Which responsibility is a focus of the U.S. Securities and Exchange Commission?
Answer - To protect investors
