WGU D076 EXAM/WGU D076 FINANCE SKILLS FOR
MANAGER NEWEST EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS A NEW UPDATED VERSION LATEST
2024-2025(100% CORRECT VERIFIED ANSWERS)
ALREADY GRADED A+
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.
The manager is deciding where to get the funds to support a new project, which
means the manager is making a financing decision.
What kind of market primarily allows institutions to borrow and lend in the short
term?
ANSWER-Money market
Assets in money markets are typically highly liquid and intended for use within a
year or less.
,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
When a company issues stock for the first time to raise capital, shares must
initially be sold through a primary market.
What is the primary role of financial institutions?
ANSWER-To conduct financial transactions such as investments, loans, and
deposits
What is a depository institution?
ANSWER-An institution that accepts and pays interest on deposits of money, as
well as extends loans
Which financial institution ensures that a nation's economy remains healthy by
controlling the amount of money circulating in the economy?
ANSWER-Central banks control the supply of money in the economy
How do insurance companies pay policyholders when a claim is made?
ANSWER-Insurance companies invest the money that they earn from premiums
into stocks and bonds, and then the returns are used to fill claims.
Which type of financial institution deals mainly with providing for retirement
through employers?
ANSWER-Pension fund
,A large corporation is looking to merge with another large corporation. Which
financial institution can help them do this?
ANSWER-Investment banks facilitate complex financial deals, like mergers.
Unemployment rate is which type of economic indicator?
ANSWER-Lagging indicators change after the economy changes.
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-Regulating inflation and unemployment is the main objective of the
Federal Reserve and central banks, and it is accomplished by adjusting the interest
rate.
What would an inverted yield curve signal?
ANSWER-An inverted yield curve reflects the expectation that the economy will
have low or negative growth in the future.
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
The responsibilities of SEC are to protect investors; maintain fair, orderly, and
efficient markets; and facilitate capital formation.
, Which type of financial institution provides individuals and firms access to
financial markets?
ANSWER-Investment institutions
Which financial institution includes entities that receive money from institutional
investors and wealthy individuals to buy troubled companies to improve them and
earn returns by selling them or going public?
ANSWER-Private equity
Yield curve is which type of economic indicator?
ANSWER-Leading
What is a reasonable alternative to keeping an emergency stash of cash?
ANSWER-Investing in a savings account
Investing in a readily withdrawable account that still earns some interest is a
value-preserving alternative.
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 is the area of finance that deals with uses and sources
of funding to increase the value of the firm.
What is the primary difference between finance and accounting?
MANAGER NEWEST EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS A NEW UPDATED VERSION LATEST
2024-2025(100% CORRECT VERIFIED ANSWERS)
ALREADY GRADED A+
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.
The manager is deciding where to get the funds to support a new project, which
means the manager is making a financing decision.
What kind of market primarily allows institutions to borrow and lend in the short
term?
ANSWER-Money market
Assets in money markets are typically highly liquid and intended for use within a
year or less.
,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
When a company issues stock for the first time to raise capital, shares must
initially be sold through a primary market.
What is the primary role of financial institutions?
ANSWER-To conduct financial transactions such as investments, loans, and
deposits
What is a depository institution?
ANSWER-An institution that accepts and pays interest on deposits of money, as
well as extends loans
Which financial institution ensures that a nation's economy remains healthy by
controlling the amount of money circulating in the economy?
ANSWER-Central banks control the supply of money in the economy
How do insurance companies pay policyholders when a claim is made?
ANSWER-Insurance companies invest the money that they earn from premiums
into stocks and bonds, and then the returns are used to fill claims.
Which type of financial institution deals mainly with providing for retirement
through employers?
ANSWER-Pension fund
,A large corporation is looking to merge with another large corporation. Which
financial institution can help them do this?
ANSWER-Investment banks facilitate complex financial deals, like mergers.
Unemployment rate is which type of economic indicator?
ANSWER-Lagging indicators change after the economy changes.
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-Regulating inflation and unemployment is the main objective of the
Federal Reserve and central banks, and it is accomplished by adjusting the interest
rate.
What would an inverted yield curve signal?
ANSWER-An inverted yield curve reflects the expectation that the economy will
have low or negative growth in the future.
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
The responsibilities of SEC are to protect investors; maintain fair, orderly, and
efficient markets; and facilitate capital formation.
, Which type of financial institution provides individuals and firms access to
financial markets?
ANSWER-Investment institutions
Which financial institution includes entities that receive money from institutional
investors and wealthy individuals to buy troubled companies to improve them and
earn returns by selling them or going public?
ANSWER-Private equity
Yield curve is which type of economic indicator?
ANSWER-Leading
What is a reasonable alternative to keeping an emergency stash of cash?
ANSWER-Investing in a savings account
Investing in a readily withdrawable account that still earns some interest is a
value-preserving alternative.
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 is the area of finance that deals with uses and sources
of funding to increase the value of the firm.
What is the primary difference between finance and accounting?
