WGU D775 Exam Questions Answered Correctly Latest Update 2025-2026
Accounting - Answers Recording and reporting past financial transactions.
Finance - Answers Managing assets, liabilities, and planning for future growth.
Personal Finance - Answers Managing individual or household money (budgeting, saving,
investing).
Public Finance - Answers Government money management, including taxes, spending, and debt.
Business Finance / Corporate Finance - Answers Managing company money, including
investments, funding, and risk.
Capital Budgeting - Answers Deciding which projects a company should invest in.
Cost of Capital - Answers The return a company must earn to cover the cost of funding a project.
Financial Ratios - Answers Comparisons of financial data to measure performance.
Common Stock - Answers Ownership in a company with voting rights and potential dividends.
Preferred Stock - Answers Ownership with fixed dividends and priority in asset claims, usually
no voting rights.
Capital Appreciation - Answers Increase in an asset's value over time.
Bonds - Answers Loans made to companies or governments that must be repaid with interest.
Coupon Rate - Answers The interest rate a bond pays to investors.
Maturity - Answers The date a bond's final payment is due.
Corporate Bonds - Answers Bonds issued by companies, usually higher risk and higher return
than government bonds.
Municipal Bonds - Answers Local or state government bonds, often tax-exempt.
Treasury Bonds - Answers U.S. federal government bonds, considered very low risk.
Financial Derivatives - Answers Contracts whose value is based on another asset's price.
Options - Answers Contracts giving the right (not obligation) to buy/sell at a set price before a
date.
Futures - Answers Contracts requiring buying/selling at a set price on a set date.
Investment Funds - Answers Pools of money from many investors invested in a portfolio.
, Mutual Funds - Answers Investment funds priced daily based on net asset value (NAV).
Exchange-Traded Funds (ETFs) - Answers Investment funds traded like stocks.
Hedge Funds - Answers High-risk funds for wealthy or institutional investors.
Pension Funds - Answers Retirement savings invested for long-term growth.
Public Markets - Answers Securities traded openly on exchanges.
Private Markets - Answers Securities traded privately, not on public exchanges.
Primary Market - Answers Where new securities are sold for the first time (e.g., IPO).
Secondary Market - Answers Where existing securities are traded between investors.
Dealer Market - Answers Market where dealers buy/sell from their own accounts.
Auction Market - Answers Market where prices are set by matching highest bid and lowest ask.
Depository Institutions - Answers Banks, credit unions, and others that take deposits and make
loans.
Investment Institutions - Answers Firms that help raise or invest money (e.g., investment banks,
mutual funds).
Insurance Companies - Answers Firms that manage financial risk by providing coverage.
Gross Domestic Product (GDP) - Answers Total value of goods and services produced in a
country.
Consumer Price Index (CPI) - Answers Measures changes in prices of consumer goods and
services.
Producer Price Index (PPI) - Answers Measures price changes at the producer/wholesale level.
Inflation - Answers Overall rise in prices, reducing purchasing power.
Consumer Spending - Answers Total spending by households on goods and services.
Unemployment Rate - Answers Percentage of the labor force without jobs but seeking work.
Full Employment - Answers Lowest unemployment rate possible without causing inflation.
Yield Curve - Answers Graph comparing interest rates on short- and long-term bonds.
Interest Rates - Answers Cost of borrowing money, usually set by central banks.
Shareholders - Answers Owners of a corporation.
Accounting - Answers Recording and reporting past financial transactions.
Finance - Answers Managing assets, liabilities, and planning for future growth.
Personal Finance - Answers Managing individual or household money (budgeting, saving,
investing).
Public Finance - Answers Government money management, including taxes, spending, and debt.
Business Finance / Corporate Finance - Answers Managing company money, including
investments, funding, and risk.
Capital Budgeting - Answers Deciding which projects a company should invest in.
Cost of Capital - Answers The return a company must earn to cover the cost of funding a project.
Financial Ratios - Answers Comparisons of financial data to measure performance.
Common Stock - Answers Ownership in a company with voting rights and potential dividends.
Preferred Stock - Answers Ownership with fixed dividends and priority in asset claims, usually
no voting rights.
Capital Appreciation - Answers Increase in an asset's value over time.
Bonds - Answers Loans made to companies or governments that must be repaid with interest.
Coupon Rate - Answers The interest rate a bond pays to investors.
Maturity - Answers The date a bond's final payment is due.
Corporate Bonds - Answers Bonds issued by companies, usually higher risk and higher return
than government bonds.
Municipal Bonds - Answers Local or state government bonds, often tax-exempt.
Treasury Bonds - Answers U.S. federal government bonds, considered very low risk.
Financial Derivatives - Answers Contracts whose value is based on another asset's price.
Options - Answers Contracts giving the right (not obligation) to buy/sell at a set price before a
date.
Futures - Answers Contracts requiring buying/selling at a set price on a set date.
Investment Funds - Answers Pools of money from many investors invested in a portfolio.
, Mutual Funds - Answers Investment funds priced daily based on net asset value (NAV).
Exchange-Traded Funds (ETFs) - Answers Investment funds traded like stocks.
Hedge Funds - Answers High-risk funds for wealthy or institutional investors.
Pension Funds - Answers Retirement savings invested for long-term growth.
Public Markets - Answers Securities traded openly on exchanges.
Private Markets - Answers Securities traded privately, not on public exchanges.
Primary Market - Answers Where new securities are sold for the first time (e.g., IPO).
Secondary Market - Answers Where existing securities are traded between investors.
Dealer Market - Answers Market where dealers buy/sell from their own accounts.
Auction Market - Answers Market where prices are set by matching highest bid and lowest ask.
Depository Institutions - Answers Banks, credit unions, and others that take deposits and make
loans.
Investment Institutions - Answers Firms that help raise or invest money (e.g., investment banks,
mutual funds).
Insurance Companies - Answers Firms that manage financial risk by providing coverage.
Gross Domestic Product (GDP) - Answers Total value of goods and services produced in a
country.
Consumer Price Index (CPI) - Answers Measures changes in prices of consumer goods and
services.
Producer Price Index (PPI) - Answers Measures price changes at the producer/wholesale level.
Inflation - Answers Overall rise in prices, reducing purchasing power.
Consumer Spending - Answers Total spending by households on goods and services.
Unemployment Rate - Answers Percentage of the labor force without jobs but seeking work.
Full Employment - Answers Lowest unemployment rate possible without causing inflation.
Yield Curve - Answers Graph comparing interest rates on short- and long-term bonds.
Interest Rates - Answers Cost of borrowing money, usually set by central banks.
Shareholders - Answers Owners of a corporation.
