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WGU D076 OA EXAM
2026|COMPREHENSIVE Q&A FOR
CERTIFICATION SUCCESS
UNIT 3
The nominal interest rate of an investment is 8%, and the inflation rate is 3%.
What is the real interest rate?
1. 3%
2. 13%
3. 8%
4. 5% - correct-answer - 4. 5%
Correct. Real Rate = Nominal Rate - Inflation, so 8% - 3% = 5%.
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UNIT 3
Which action reduces the future value of cash flows?
1. Receive all cash flows later than expected.
2. Receive all cash flows earlier than expected.
3. Increase the inflation rate.
4. Increase the discount rate. - correct-answer - 1. Receive all cash flows later
than expected.
Correct. The later the cash flows are recieved, the lower the future value is.
UNIT 3
How is risk defined in finance?
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1. The probability that systematic factors in the market will affect an investment
2. The probability that firm-specific factors will affect an investment
3. The probability that a recession occurs
4. The possibility that the realized or actual return will differ from what we expect
- correct-answer - 4. The possibility that the realized or actual return will differ
from what we expect
Correct. Risk is defined as the possibility that the realized or actual return will
differ from our expected return.
UNIT 3
Which example below is considered a market risk factor?
1. An oil tank bursts and floods a company's production area.
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2. A company's top management personnel die in a plane crash.
3. An unexpected change in interest rate occurs.
4. A company's labor force goes on strike. - correct-answer - 3. An unexpected
change in interest rate occurs.
Correct. This is a factor that affects everyone because it will cause the cost of
borrowing and lending to increase. This is a market risk factor.
UNIT 3
Which type of interest rate includes interest on interest in addition to interest on
the principal?
1. Nominal Interest
2. Simple Interest
WGU D076 OA EXAM
2026|COMPREHENSIVE Q&A FOR
CERTIFICATION SUCCESS
UNIT 3
The nominal interest rate of an investment is 8%, and the inflation rate is 3%.
What is the real interest rate?
1. 3%
2. 13%
3. 8%
4. 5% - correct-answer - 4. 5%
Correct. Real Rate = Nominal Rate - Inflation, so 8% - 3% = 5%.
,2|Page
UNIT 3
Which action reduces the future value of cash flows?
1. Receive all cash flows later than expected.
2. Receive all cash flows earlier than expected.
3. Increase the inflation rate.
4. Increase the discount rate. - correct-answer - 1. Receive all cash flows later
than expected.
Correct. The later the cash flows are recieved, the lower the future value is.
UNIT 3
How is risk defined in finance?
,3|Page
1. The probability that systematic factors in the market will affect an investment
2. The probability that firm-specific factors will affect an investment
3. The probability that a recession occurs
4. The possibility that the realized or actual return will differ from what we expect
- correct-answer - 4. The possibility that the realized or actual return will differ
from what we expect
Correct. Risk is defined as the possibility that the realized or actual return will
differ from our expected return.
UNIT 3
Which example below is considered a market risk factor?
1. An oil tank bursts and floods a company's production area.
, 4|Page
2. A company's top management personnel die in a plane crash.
3. An unexpected change in interest rate occurs.
4. A company's labor force goes on strike. - correct-answer - 3. An unexpected
change in interest rate occurs.
Correct. This is a factor that affects everyone because it will cause the cost of
borrowing and lending to increase. This is a market risk factor.
UNIT 3
Which type of interest rate includes interest on interest in addition to interest on
the principal?
1. Nominal Interest
2. Simple Interest
