Unit 2
What are the main services offered by financial institutions?
1. Deciding which assets to invest in to create wealth in the future
2. Soliciting charitable donations and then managing the distribution of these funds
3. Evaluating sources of funding for a business project, the capit...
,WGU D076 Finance Skills for
Managers OA Prep
Unit 2
What are the main services offered by financial institutions?
1. Deciding which assets to invest in to create wealth in the future
2. Soliciting charitable donations and then managing the distribution of these funds
3. Evaluating sources of funding for a business project, the capital structure of a firm, or
actions managers could take to increase the value of the firm
4. Accepting a wide variety of deposits, offering investment products, providing loans, and
brokering financial transactions - answer-4. Accepting a wide variety of deposits, offering
investment products, providing loans, and brokering financial transactions
Correct! Financial institutions such as banks, insurance companies, and mutual fund
companies provide these services.
Unit 2
What is the main objective of personal financial goals?
1. To maximize stock investments
2. To maximize owner wealth
3. To maximize charity donations
4. To maximize individual utility - answer-4. To maximize individual utility
Correct! You set goals and act to increase your satisfaction or happiness by taking care of
necessities and achieving priorities.
Unit 2
Which task does the financial manager of a firm perform that involves the issuance of new
stocks and bonds?
1. Deciding on accounting standards
2. Making financing decisions
3. Managing working capital
4. Making investing decisions - answer-2. Making financing decisions
Correct! Once investment decisions are made, a financial manager considers different
possibilities of financing sources for the investments. This may include issuing new stocks
and bonds.
, Unit 2
Why is understanding the definition of finance important in managing personal finances?
1. It helps individuals act ethically with regard to finances.
2. It helps individuals understand legal issues related to finance.
3. It helps individuals compare the costs and benefits of an action to determine whether to
take that action.
4. It allows individuals to find an investment with the highest return possible. - answer-3. It
helps individuals compare the costs and benefits of an action to determine whether to take
that action.
Correct! Any financial decision should make sense in terms of its costs and benefits.
Unit 2
In which type of market would a company issue bonds or stocks for the first time?
1. Dealer market
2. Money market
3. Secondary market
4. Primary market - answer-4. Primary market
Correct! This is the purpose of a primary market.
Unit 2
Which type of financial institution is a mutual fund?
Correct! Investment institutions provide individuals and firms access to financial markets.
Unit 2
Which financial institution specializes in managing and administering retirement funds?
1. Mutual funds
2. Investment banks
3. Private equity
4. Pension funds - answer-4. Pension funds
Correct! Pension funds specialize in retirement funds.
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