WGU D775 EXAM STUDY SHEET 2026
ACTUAL EXAM QUESTIONS WITH
SOLUTIONS.
◍ Capital raising.Answer:Securing funding for business operations
and projects.
◍ Money management activity.Answer:Involves the creation,
circulation, and management of money.
◍ Common stock.Answer:A share of ownership in a firm with voting
rights.
◍ Preferred stock characteristic.Answer:Fixed dividends.
◍ Purpose of bonds for issuers.Answer:To raise capital without
diluting ownership.
◍ Junk bonds.Answer:Speculative bonds.
◍ Options in financial derivatives.Answer:They give the buyer the
right, but not the obligation, to buy or sell an asset.
, ◍ Economies of scale for funds.Answer:By making large-scale
investments that reduce transaction costs.
◍ Initial public offering (IPO).Answer:The first sale of a company's
stock to the public.
◍ Secondary market activity.Answer:The trading of stocks on the
New York Stock Exchange.
◍ Types of financial markets.Answer:Primary markets and secondary
markets.
◍ Role of financial regulators.Answer:Ensuring fair and transparent
markets.
◍ Depository institutions.Answer:Institutions that accept deposits and
provide loans.
◍ Primary source of revenue for depository
institutions.Answer:Interest income from loans.
◍ Rising Consumer Price Index (CPI) effect.Answer:It indicates
increased costs for raw materials and labor.
◍ Return on equity goals.Answer:Beating their return on equity goals
for each quarter
ACTUAL EXAM QUESTIONS WITH
SOLUTIONS.
◍ Capital raising.Answer:Securing funding for business operations
and projects.
◍ Money management activity.Answer:Involves the creation,
circulation, and management of money.
◍ Common stock.Answer:A share of ownership in a firm with voting
rights.
◍ Preferred stock characteristic.Answer:Fixed dividends.
◍ Purpose of bonds for issuers.Answer:To raise capital without
diluting ownership.
◍ Junk bonds.Answer:Speculative bonds.
◍ Options in financial derivatives.Answer:They give the buyer the
right, but not the obligation, to buy or sell an asset.
, ◍ Economies of scale for funds.Answer:By making large-scale
investments that reduce transaction costs.
◍ Initial public offering (IPO).Answer:The first sale of a company's
stock to the public.
◍ Secondary market activity.Answer:The trading of stocks on the
New York Stock Exchange.
◍ Types of financial markets.Answer:Primary markets and secondary
markets.
◍ Role of financial regulators.Answer:Ensuring fair and transparent
markets.
◍ Depository institutions.Answer:Institutions that accept deposits and
provide loans.
◍ Primary source of revenue for depository
institutions.Answer:Interest income from loans.
◍ Rising Consumer Price Index (CPI) effect.Answer:It indicates
increased costs for raw materials and labor.
◍ Return on equity goals.Answer:Beating their return on equity goals
for each quarter
