WGU D363 PERSONAL FINANCE OA
EXAM STUDY GUIDE 2026/2027
ACCURATE QUESTIONS WITH
CORRECT DETAILED SOLUTIONS ||
100% GUARANTEED PASS
<NEWEST VERSION>
1. Term: Net Worth - ANSWER ✔ Total assets minus total liabilities.
2. Term: Cash Surplus/Deficit - ANSWER ✔ Income remaining after all
expenses are paid.
3. Term: Monetary Assets - ANSWER ✔ Highly liquid accounts (cash,
checking, CDs).
4. Term: Debt-to-Income (DTI) Ratio - ANSWER ✔ Monthly debt
obligations divided by gross monthly income.
5. Term: Opportunity Cost - ANSWER ✔ The value of the next best
alternative forgone.
6. Term: Emergency Fund - ANSWER ✔ Liquid safety net for unforeseen
events.
7. Term: Variance - ANSWER ✔ Difference between budgeted and actual
amounts.
8. Term: Discretionary Spending - ANSWER ✔ Non-essential funds after
necessities.
,9. Term: Certificate of Deposit (CD) - ANSWER ✔ Fixed-time deposit
instrument with early withdrawal penalties.
10.Term: Money Market Account - ANSWER ✔ Interest-earning highly
liquid account.
11.Term: Tenancy in Common - ANSWER ✔ Co-ownership allowing
independent sale and passing of shares to heirs.
12.Term: Joint Tenancy - ANSWER ✔ Co-ownership where shares
automatically pass to surviving co-owners.
13.Market Risk - ANSWER ✔ Also know as sytematic risk, the potential for
investment losses due to adverse movement in financial markets
14.unsystematic risk - ANSWER ✔ Risks that are not shared with a wider
market or industry
15.Political risk - ANSWER ✔ The risk that political decisions, events, or
conditions will significantly affect the profitability of an investment
16.Inflation risk - ANSWER ✔ The risk that rising inflation will decrease the
real value of an investment or asset
17.Regulatory risk - ANSWER ✔ Refers to the potential negative impact on a
business or industry due to changes in laws, regulations or policies
18.Business cycle risk - ANSWER ✔ The risk that a companies profits or an
investments returns will be negatively affected by fluctuations in the
economy, specifically during periods of economic contraction or recession
19.Marketability risk/liquidity risk - ANSWER ✔ The risk that an investment
cannot be easily sold or that it will be sold at a significant discount if it is
sold
20.Market volatility risk - ANSWER ✔ The risk of an adverse change is price,
due to changes in the volatility of a factor affecting that price
,21.Global investment risk - ANSWER ✔ The risk surrounding investment in
foreign markets or assets, encompassing a range of factors that can lead to
financial losses
22.HO-1 - ANSWER ✔ Basic form, named perils. Only offers named perils
coverage for your home
23.HO-2 - ANSWER ✔ Broad form. Covers the dwelling, other structures,
and personal property on a named perils basis
24.HO-3 - ANSWER ✔ Special form. Has open perils coverage for dwelling,
except for those specifically excluded. Named peril coverage for personal
property, personal liability coverage.
25.HO-4 - ANSWER ✔ Renters insurance, cover personal property and
liability, but not the home itself
26.HO-5 - ANSWER ✔ Like HO-3 policies, but offer higher limits and cover
a broader range of perils. They are usually recommended for brand new
homes
27.HO-6 - ANSWER ✔ Condo policies similar to HO-3, but only applies to
the interior of the home
28.HO-7 - ANSWER ✔ Mobile home policies, similar to HO-3
29.HO-8 - ANSWER ✔ Policies for older or historically significant homes,
similar to HO-3
30.Market Risk - ANSWER ✔ Also know as sytematic risk, the potential for
investment losses due to adverse movement in financial markets
31.unsystematic risk - ANSWER ✔ Risks that are not shared with a wider
market or industry
, 32.Each month Jack deposits money into his personal retirement account, which
his employer matches. Additionally, Jack deposits money into his savings
account and an emergency fund. Jack's car breaks down and needs repairs.
Which account should Jack access first?
His emergency fund
His employer-funded retirement account
His savings account
His personal retirement account - ANSWER ✔ The emergency fund exists for
events Jack did not predict, such as fixing a car or replacing a major appliance.
33.What should be done first to manage personal spending habits?
Create a budget that lists income and expenses
Open an investment account
Pay off credit card bills in full each month
Open a retirement account - ANSWER ✔ A budget that lists expenses and
income is the first step to managing personal spending habits.
34.Which personal finance philosophy should Diego adhere to each month in
order to wisely manage his personal spending habits?
Diego should pay his rent first each month.
Diego should save money up front each month.
Diego should make charitable contributions.
Diego should invest in the stock market. - ANSWER ✔ Wise money
managers pay themselves first each month by putting money into savings first.
35.Anika wants to start saving money to buy a new car. She decides to put
together a statement that tracks her income and expenses for each month.
She wants to learn what spending habits she has and where she can be more
responsible.
Which statement should Anika create?
Net worth statement
Asset and liability statement
Gains and losses statement
Cash-flow statement - ANSWER ✔ A cash-flow statement, also known as an
income and expense statement, summarizes income and expense transactions
over a certain period of time, usually monthly. This statement is the best way to
know where your money went.
EXAM STUDY GUIDE 2026/2027
ACCURATE QUESTIONS WITH
CORRECT DETAILED SOLUTIONS ||
100% GUARANTEED PASS
<NEWEST VERSION>
1. Term: Net Worth - ANSWER ✔ Total assets minus total liabilities.
2. Term: Cash Surplus/Deficit - ANSWER ✔ Income remaining after all
expenses are paid.
3. Term: Monetary Assets - ANSWER ✔ Highly liquid accounts (cash,
checking, CDs).
4. Term: Debt-to-Income (DTI) Ratio - ANSWER ✔ Monthly debt
obligations divided by gross monthly income.
5. Term: Opportunity Cost - ANSWER ✔ The value of the next best
alternative forgone.
6. Term: Emergency Fund - ANSWER ✔ Liquid safety net for unforeseen
events.
7. Term: Variance - ANSWER ✔ Difference between budgeted and actual
amounts.
8. Term: Discretionary Spending - ANSWER ✔ Non-essential funds after
necessities.
,9. Term: Certificate of Deposit (CD) - ANSWER ✔ Fixed-time deposit
instrument with early withdrawal penalties.
10.Term: Money Market Account - ANSWER ✔ Interest-earning highly
liquid account.
11.Term: Tenancy in Common - ANSWER ✔ Co-ownership allowing
independent sale and passing of shares to heirs.
12.Term: Joint Tenancy - ANSWER ✔ Co-ownership where shares
automatically pass to surviving co-owners.
13.Market Risk - ANSWER ✔ Also know as sytematic risk, the potential for
investment losses due to adverse movement in financial markets
14.unsystematic risk - ANSWER ✔ Risks that are not shared with a wider
market or industry
15.Political risk - ANSWER ✔ The risk that political decisions, events, or
conditions will significantly affect the profitability of an investment
16.Inflation risk - ANSWER ✔ The risk that rising inflation will decrease the
real value of an investment or asset
17.Regulatory risk - ANSWER ✔ Refers to the potential negative impact on a
business or industry due to changes in laws, regulations or policies
18.Business cycle risk - ANSWER ✔ The risk that a companies profits or an
investments returns will be negatively affected by fluctuations in the
economy, specifically during periods of economic contraction or recession
19.Marketability risk/liquidity risk - ANSWER ✔ The risk that an investment
cannot be easily sold or that it will be sold at a significant discount if it is
sold
20.Market volatility risk - ANSWER ✔ The risk of an adverse change is price,
due to changes in the volatility of a factor affecting that price
,21.Global investment risk - ANSWER ✔ The risk surrounding investment in
foreign markets or assets, encompassing a range of factors that can lead to
financial losses
22.HO-1 - ANSWER ✔ Basic form, named perils. Only offers named perils
coverage for your home
23.HO-2 - ANSWER ✔ Broad form. Covers the dwelling, other structures,
and personal property on a named perils basis
24.HO-3 - ANSWER ✔ Special form. Has open perils coverage for dwelling,
except for those specifically excluded. Named peril coverage for personal
property, personal liability coverage.
25.HO-4 - ANSWER ✔ Renters insurance, cover personal property and
liability, but not the home itself
26.HO-5 - ANSWER ✔ Like HO-3 policies, but offer higher limits and cover
a broader range of perils. They are usually recommended for brand new
homes
27.HO-6 - ANSWER ✔ Condo policies similar to HO-3, but only applies to
the interior of the home
28.HO-7 - ANSWER ✔ Mobile home policies, similar to HO-3
29.HO-8 - ANSWER ✔ Policies for older or historically significant homes,
similar to HO-3
30.Market Risk - ANSWER ✔ Also know as sytematic risk, the potential for
investment losses due to adverse movement in financial markets
31.unsystematic risk - ANSWER ✔ Risks that are not shared with a wider
market or industry
, 32.Each month Jack deposits money into his personal retirement account, which
his employer matches. Additionally, Jack deposits money into his savings
account and an emergency fund. Jack's car breaks down and needs repairs.
Which account should Jack access first?
His emergency fund
His employer-funded retirement account
His savings account
His personal retirement account - ANSWER ✔ The emergency fund exists for
events Jack did not predict, such as fixing a car or replacing a major appliance.
33.What should be done first to manage personal spending habits?
Create a budget that lists income and expenses
Open an investment account
Pay off credit card bills in full each month
Open a retirement account - ANSWER ✔ A budget that lists expenses and
income is the first step to managing personal spending habits.
34.Which personal finance philosophy should Diego adhere to each month in
order to wisely manage his personal spending habits?
Diego should pay his rent first each month.
Diego should save money up front each month.
Diego should make charitable contributions.
Diego should invest in the stock market. - ANSWER ✔ Wise money
managers pay themselves first each month by putting money into savings first.
35.Anika wants to start saving money to buy a new car. She decides to put
together a statement that tracks her income and expenses for each month.
She wants to learn what spending habits she has and where she can be more
responsible.
Which statement should Anika create?
Net worth statement
Asset and liability statement
Gains and losses statement
Cash-flow statement - ANSWER ✔ A cash-flow statement, also known as an
income and expense statement, summarizes income and expense transactions
over a certain period of time, usually monthly. This statement is the best way to
know where your money went.
