D076 OA EXAMINATION TEST 2026
COMPREHENSIVE STUDY GUIDE WITH
FULL SOLUTIONS
⩥ What area of finance involves deciding which assets to invest in to
create wealth in the future?
Investment banking
Financial institutions
Investments
Organizational finance. Answer: Investments
⩥ Hannah is the financial manager of a firm. A project that she has
recommended has been approved and will cost $5 million. Since the
company does not have enough cash on reserve, Hannah must figure out
how to raise enough money to start the project. She can choose whether
to issue new bonds, new stocks, a mortgage loan, or some combination
of those options. What task is Hannah performing in this scenario?
Managing working capital
Managing financial investments
Making a financing decision
Making an investment decision. Answer: Making a financing decision
,⩥ Maria and Mateo are setting financial goals. They decide that they
need to save $200 each month to reach their goal of taking their children
to visit their grandparents in Spain next summer. What is the objective of
setting such a goal?
To maximize individual utility
To make personal finances predictable
To set priorities in personal finances
To minimize personal expenses. Answer: To maximize individual utility
⩥ Which professional works with individuals to help them achieve their
financial goals?
Financial planner
Corporate financial analyst
Private equity manager
Commercial banker. Answer: Financial planner
⩥ Omar is about to purchase a new car for $30,000. He knows he wants
to buy the car, but he is still trying to decide how to pay for it. He has
barely over $30,000 in his bank account. He can either take out an auto
loan from a bank or use a mix of cash and an auto loan.
In this scenario, what is Omar doing?
Financing a goal
Assessing a financial goal
Investing to achieve a goal
,Budgeting. Answer: Financing a goal
⩥ Which responsibility is a focus of the U.S. Securities and Exchange
Commission?
To protect investors
To regulate inflation
To raise interest rates
To provide liquidity. Answer: To protect investors
⩥ Which type of financial institution provides individuals and firms
access to financial markets?
Credit institutions
Investment institutions
Contractual savings institutions
Depository institutions. 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?
Credit union
Mutual fund
Commercial bank
, Private equity. Answer: Private equity
⩥ Yield curve is which type of economic indicator?
Leading
Concurrent
Lagging
Coincident. Answer: Leading
⩥ About a year ago, the short-term Treasury bill had 1.54% interest and
the long-term Treasury note had 2.54% interest. This week, the 1-year
Treasury bill has an interest rate of 3.13%, while the 10-year Treasury
note has an interest rate of 2.28%. What does this information indicate
about the future economy?
A)It may indicate a decreasing unemployment rate along with higher
wages.
B)It may reflect an expectation that the economy will grow in the future
along with higher inflation.
C)It may indicate an economic downturn.
D)It may indicate that the economy is in a steady state.. Answer: C)It
may indicate an economic downturn.
⩥ What does the term legal describe?
A) An action that is in accordance with the laws and rules set by an
authority.
COMPREHENSIVE STUDY GUIDE WITH
FULL SOLUTIONS
⩥ What area of finance involves deciding which assets to invest in to
create wealth in the future?
Investment banking
Financial institutions
Investments
Organizational finance. Answer: Investments
⩥ Hannah is the financial manager of a firm. A project that she has
recommended has been approved and will cost $5 million. Since the
company does not have enough cash on reserve, Hannah must figure out
how to raise enough money to start the project. She can choose whether
to issue new bonds, new stocks, a mortgage loan, or some combination
of those options. What task is Hannah performing in this scenario?
Managing working capital
Managing financial investments
Making a financing decision
Making an investment decision. Answer: Making a financing decision
,⩥ Maria and Mateo are setting financial goals. They decide that they
need to save $200 each month to reach their goal of taking their children
to visit their grandparents in Spain next summer. What is the objective of
setting such a goal?
To maximize individual utility
To make personal finances predictable
To set priorities in personal finances
To minimize personal expenses. Answer: To maximize individual utility
⩥ Which professional works with individuals to help them achieve their
financial goals?
Financial planner
Corporate financial analyst
Private equity manager
Commercial banker. Answer: Financial planner
⩥ Omar is about to purchase a new car for $30,000. He knows he wants
to buy the car, but he is still trying to decide how to pay for it. He has
barely over $30,000 in his bank account. He can either take out an auto
loan from a bank or use a mix of cash and an auto loan.
In this scenario, what is Omar doing?
Financing a goal
Assessing a financial goal
Investing to achieve a goal
,Budgeting. Answer: Financing a goal
⩥ Which responsibility is a focus of the U.S. Securities and Exchange
Commission?
To protect investors
To regulate inflation
To raise interest rates
To provide liquidity. Answer: To protect investors
⩥ Which type of financial institution provides individuals and firms
access to financial markets?
Credit institutions
Investment institutions
Contractual savings institutions
Depository institutions. 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?
Credit union
Mutual fund
Commercial bank
, Private equity. Answer: Private equity
⩥ Yield curve is which type of economic indicator?
Leading
Concurrent
Lagging
Coincident. Answer: Leading
⩥ About a year ago, the short-term Treasury bill had 1.54% interest and
the long-term Treasury note had 2.54% interest. This week, the 1-year
Treasury bill has an interest rate of 3.13%, while the 10-year Treasury
note has an interest rate of 2.28%. What does this information indicate
about the future economy?
A)It may indicate a decreasing unemployment rate along with higher
wages.
B)It may reflect an expectation that the economy will grow in the future
along with higher inflation.
C)It may indicate an economic downturn.
D)It may indicate that the economy is in a steady state.. Answer: C)It
may indicate an economic downturn.
⩥ What does the term legal describe?
A) An action that is in accordance with the laws and rules set by an
authority.
