WGU C214 Exam Questions with Accurate Answers

Corporate Finance - ANSWER-focuses on financial decision making by a firms management Investments - ANSWER-various types of financial instruments (stocks, bonds, etc) Banking or Financial Institutions - ANSWER-make money by paying depositors a smaller interest rate than the interest rate charged to borrowers Treasury Securities - ANSWER-generally bonds that are issued by the US government Corporate Bonds - ANSWER-firms borrowing from the public Stocks - ANSWER-a share of ownership in a company Primary financial markets - ANSWER-markets where securities are first issued Syndicate - ANSWER-a group that is temporarily formed to handle a bond or stock issue: generally large investment bank or institutional investors Underwriter - ANSWER-responsible for determining the value of the security; may purchase all the securities & then resale to investors Competitive sale - ANSWER-underwriters submit bids offering highest price/lowest interest rate; underwriter resales a slightly higher price Negotiated sale - ANSWER-underwriters submit bids, go thru interview to be selected