(ACE FOR 2024/2025 EXAM REVIEW) Test Bank. All QUESTIONS FOR C214 WGU Financial Management End of Section Questions & Answers. 100% Accurate, VERIFIED.

Test Bank. All QUESTIONS FOR C214 WGU Financial Management End of Section Questions & Answers. 100% Accurate, VERIFIED. Economics is a subfield of Finance (t/f) 1.1 - -F. Finance is a subfield of Economics. (right answer) Which of the following is not an example of firm capital? 1.1 - -Financial markets Which of the following are examples of firm capital? 1.1 - -Cash, Labor, Machinery Capital is defined as a financial asset. (t/f) 1.1 - -T. Capital is defined as a financial asset. Corporate finance is devoted to understanding various types of financial instruments. (t/f) 1.1 - -F. Investments is devoted to understanding various types of financial instruments. (right answer) Which of the following is an example of firm capital? 1.1 - -Cash Corporate finance focuses on the decision making by the management of the firm. (t/f) 1.1 - -T. Corporate finance focuses on the decision making by the management of the firm. What are the three important areas of finance discussed in this section?1.1 - -Corporate Finance, Investments, and Banking/financial institutions Banks make money when interest rates they charge to borrowers are less than interest rates they pay depositors. (t/f) 1.1 - -F. Banks make money when interest rates they charge to borrowers are MORE than interest rates they pay depositors. (right answer) Stocks and bonds are two types of financial instruments. t/f 1.1 - -T. Stocks and bonds are two types of financial instruments. Stock represents ownership in a particular company. t/f 1.2 - -T. Stock represents ownership in a particular company. Companies can raise capital by issuing bonds or stocks. t/f 1.2 - -T. Companies can raise capital by issuing bonds or stocks. A stock is a debt instrument issued by corporations. t/f 1.2 - -F. A stock represents ownership in a company (right answer) A Treasury bond is a debt instrument issued by corporations. t/f 1.2 - -F. A Treasury bond is a debt instrument issued by governments. (right answer) A bond is a debt instrument issued by corporations or governments. t/f 1.2 - -T. A bond is a debt instrument issued by corporations or governments. A stock is a share of ______________ in a particular company. 1.2 - -ownership 1.2 A bond is similar to a loan. t/f 1.2 - -T A bond is similar to a loan. Primary financial markets are markets where issuers place new securities with investors. t/f 1.3 - -T. Primary financial markets are markets where issuers place new securities with investors. What are the two ways a syndicate can place a bond? 1.3 - -Competitive sale or negotiated sale An IPO is a seasoned equity offering. t/f 1.3 - -false. IPO is new equity offering (right answer) An IPO occurs on the primary market. t/f 1.3 - -T An IPO occurs on the primary market. Syndicates are generally made up of investment banks and other institutional investors. t/f 1.3 - -T Syndicates are generally made up of investment banks and other institutio