Finance Skills for Managers - D076 Exam Questions With Revised Answers
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Course
WGU D076
Institution
WGU D076
Finance Skills for Managers - D076 Exam
Questions With Revised Answers
UNIT 2
What are the main services offered by financial institutions? - answerAccepting a wide
variety of deposits, offering investment products, providing loans, and brokering financial
transactions
(Correct! Financial ins...
Finance Skills for Managers - D076 Exam
Questions With Revised Answers
UNIT 2
What are the main services offered by financial institutions? - answer✔✔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.)
What is the main objective of personal financial goals? - answer✔✔To maximize individual
utility
(Correct! You set goals and act to increase your satisfaction or happiness by taking care of
necessities and achieving priorities.)
Which task does the financial manager of a firm perform that involves the issuance of new stocks
and bonds? - answer✔✔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.)
Why is understanding the definition of finance important in managing personal finances? -
answer✔✔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.)
In which type of market would a company issue bonds or stocks for the first time? -
answer✔✔Primary market
(Correct! This is the purpose of a primary market.)
Which type of financial institution is a mutual fund? - answer✔✔Investment institution
(Correct! Investment institutions provide individuals and firms access to financial markets.)
Which financial institution specializes in managing and administering retirement funds? -
answer✔✔Pension funds
(Correct! Pension funds specialize in retirement funds.)
Which type of economic indicator is the consumer price index? - answer✔✔Lagging indicator
(Correct! CPI usually changes after the economy as a whole changes.)
What does the term ethical refer to? - answer✔✔The accepted standards of conduct that guide a
person's behavior
(Correct! Ethical refers to the accepted standards of conduct that guide a person's behavior.)
A company's officers and board of directors are selling their stocks in the firm at higher prices
due to false accounting reports that made the stock seem more valuable than it truly was. Which
ethical issue is occurring in this situation? - answer✔✔Agency problem due to conflicting
interests
(Correct! Accounting manipulation by management in pursuit of higher stock-related
compensation is an example of an agency problem.)
UNIT 3
What is another name for the cost of capital? - answer✔✔Discount rate
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