WGU C201 BUSINESS ACUMEN EXAM COMPLETE EXAM QUESTIONS AND ANSWERS 100% VERIFIED A+ GRADE ASSURED!!!!! NEW LATEST UPDATE!!!!

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STUDENT NAME: ________________________________
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COURSE: Business Acumen Financial Analysis
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EXAM CODE: WGU C201 BUSINESS ACUMEN EXAM PREP
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-101




EXAM INSTRUCTIONS:
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1. Print your full name and date clearly in the header above.
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2. This exam booklet contains both Test Questions (Part I) and Verified Solutions (Part II).
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3. Answer all multiple-choice questions clearly. Double-check your work.
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4. Do not break the seal or open this booklet until instructed to do so by the proctor.
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Q1. Understand the financial system.
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[Verified Solution]: The financial system is the process by which funds are transferred between those
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having excess funds (savers) and those needing additional funds (users). Savers and users are individual
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s, businesses, and governments. Savers expect to earn a rate of return in exchange for the use of their f
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unds. Financial markets, financial institutions, and financial instruments (securities) make up the financi
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al system. Although direct transfers are possible, most funds flow from savers to users through the finan
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cial markets or financial institutions, such as commercial banks. A well-
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functioning financial system is critical to the overall health of a nation's economy
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Q2. What is the financial system?
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[Verified Solution]: The financial system is the process by which funds are transferred between those
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having excess funds (savers) and those needing additional funds (users).
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Q3. In the financial system, who are the borrowers and who are the savers?
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[Verified Solution]: Savers and borrowers are individuals, businesses, and governments. Generally, ind
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ividuals are net savers, meaning they spend less than they make, whereas businesses and governments a
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re net borrowers
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Q4. List the two most common ways in which funds are transferred between borrowers and s
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avers.
[Verified Solution]: The two most common ways funds are transferred are through the financial marke
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ts and through financial institutions.
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, Q5. Discuss financial markets
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[Verified Solution]: A financial market is a market where securities are bought and sold. The primary
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market for securities serves businesses and governments that want to sell new security issues to raise fu
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nds. Securities are sold in the primary market either through an open auction or via a process called un
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derwriting. The secondary market handles transactions of previously issued securities between investors.
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dThe New York Stock Exchange is a secondary market. The business or government that issued the secu
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rity is not directly involved in secondary market transactions. In terms of the dollar value of trading vol
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ume, the secondary market is about four to five times larger than the primary market
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Q6. What is a financial market?
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[Verified Solution]: A financial market is a market in which securities are issued and traded
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Q7. Distinguish between a primary and a secondary financial market
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[Verified Solution]: The primary market for securities serves businesses and governments that want to
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sell new security issues to raise funds. The secondary market handles transactions of previously issued s
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ecurities between investors. dd dd




Q8. Briefly explain the role of financial institutions in the sale of securities.
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[Verified Solution]: Financial institutions purchase new securities issues from corporations or state and
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local governments and then resell the securities to investors. The institutions charge a fee for their servi
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ces.




Q9. Understand the stock markets
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[Verified Solution]: The best- dd dddd dd



known financial markets are the stock exchanges. They exist throughout the world. The two largest—
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the New York Stock Exchange and NASDAQ—
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are located in the United States. The NYSE is bigger, measured in terms of the total value of stock trad
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ed. Larger and betterknown companies dominate the NYSE. Buy and sell orders are transmitted to the t
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rading floor for execution. The NASDAQ stock market is an electronic market in which buy and sell or
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ders are entered into a computerized communication system for execution. Most of the world's major st
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ock markets today use similar electronic trading systems
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Q10. What are the world's two largest stock markets?
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[Verified Solution]: The world's two largest stock markets are the New York Stock Exchange (NYSE)
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dand the NASDAQ.
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