WGU D775 SECTION 1 EXAM 72 QUESTIONS WITH
VERIFIED ANSWERS 2025/2026
Managing individual or household financial activities - CORRECT ANSWER Personal
Finance
Managing a government's revenues, expenditures, and debt - CORRECT ANSWER
Public Finance
Managing a company's financial activities and strategies - CORRECT ANSWER
Business Finance
when a stock is bought at a lower price than what it is sold at. - CORRECT ANSWER
Capital Appreciation
provide more stability with fixed dividends and higher priority in asset claims but
usually lack voting rights, offering less control over corporate governance. -
CORRECT ANSWER Preferred stocks
offer the potential for higher returns and voting rights but come with greater risk
due to their lower priority in claims on assets. - CORRECT ANSWER Common
stocks
Common stock represents ownership with voting rights and variable dividloans
that various entities (like businesses, governments, or individuals) issue, or sell, to
raise capital.ends, - CORRECT ANSWER
, loans that various entities (like businesses, governments, or individuals) issue, or
sell, to raise capital. - CORRECT ANSWER Bonds
a specific date when the last coupon is due along with the original face value of
the bond - CORRECT ANSWER maturity
high-risk, and investors hope to earn a relatively higher return due to that risk. -
CORRECT ANSWER junk bonds/ speculative bonds
Issued by firms to finance operations, expansions, and other business activities.
Typically carries higher yields due to higher risk - CORRECT ANSWER Corporate
Bonds
Issued by government groups. There are two main kinds municipal and treasury. -
CORRECT ANSWER public bonds:
Issued by states or local governments and municipalities fund public projects, like
infrastructure such as public roads, hospitals, parks, and fire departments. -
CORRECT ANSWER Municipal Bonds / munis
When firms have extra cash sitting in their account- short-term, non-risky
investments for the cash. - CORRECT ANSWER Treasury bonds / treasuries
Companies can issue bonds (debt financing), which must be repaid with interest,
or sell stock (equity financing), which gives ownership to investors but does not
VERIFIED ANSWERS 2025/2026
Managing individual or household financial activities - CORRECT ANSWER Personal
Finance
Managing a government's revenues, expenditures, and debt - CORRECT ANSWER
Public Finance
Managing a company's financial activities and strategies - CORRECT ANSWER
Business Finance
when a stock is bought at a lower price than what it is sold at. - CORRECT ANSWER
Capital Appreciation
provide more stability with fixed dividends and higher priority in asset claims but
usually lack voting rights, offering less control over corporate governance. -
CORRECT ANSWER Preferred stocks
offer the potential for higher returns and voting rights but come with greater risk
due to their lower priority in claims on assets. - CORRECT ANSWER Common
stocks
Common stock represents ownership with voting rights and variable dividloans
that various entities (like businesses, governments, or individuals) issue, or sell, to
raise capital.ends, - CORRECT ANSWER
, loans that various entities (like businesses, governments, or individuals) issue, or
sell, to raise capital. - CORRECT ANSWER Bonds
a specific date when the last coupon is due along with the original face value of
the bond - CORRECT ANSWER maturity
high-risk, and investors hope to earn a relatively higher return due to that risk. -
CORRECT ANSWER junk bonds/ speculative bonds
Issued by firms to finance operations, expansions, and other business activities.
Typically carries higher yields due to higher risk - CORRECT ANSWER Corporate
Bonds
Issued by government groups. There are two main kinds municipal and treasury. -
CORRECT ANSWER public bonds:
Issued by states or local governments and municipalities fund public projects, like
infrastructure such as public roads, hospitals, parks, and fire departments. -
CORRECT ANSWER Municipal Bonds / munis
When firms have extra cash sitting in their account- short-term, non-risky
investments for the cash. - CORRECT ANSWER Treasury bonds / treasuries
Companies can issue bonds (debt financing), which must be repaid with interest,
or sell stock (equity financing), which gives ownership to investors but does not
