Business finance - Answer Which area of finance deals with sources of funding and
the capital structure of corporations and seeks to increase the value of a firm to its
owners?
Finance focuses on the future, while accounting is generally backward-looking. -
Answer What is the primary difference between finance and accounting?
Investments - Answer Which subspecialty of finance primarily involves deciding
which assets will create more wealth and earn positive returns?
Investments - Answer An area of finance that deals with investment allocation and
asset pricing.
Financial Institutions - Answer An area of finance that involves organizations that
accept deposits, offer investment products, loan money, or broker financial
transactions.
Corporate Finance. - Answer An area of finance that involves activities used to
increase shareholder wealth.
To maximize satisfaction from products purchased and services obtained - Answer
What is the primary aim of personal finance goals?
Do the benefits of this investment outweigh the costs? - Answer What should be the
main question a firm asks when considering any investment decision?
To maximize owner wealth - Answer What is the primary goal of the financial
manager of a firm?
making investment decisions,
making financing decisions, and
managing working capital. - Answer What are three main tasks that a financial
manager of a firm does in order to achieve the goal of the firm, which is to maximize
shareholder wealth?
CFO, Chief Financial Officer - Answer Who is the highest ranking officer in corporate
finance?
The CFO is responsible for all the financial decisions made by the firm. He or she
serves as the CEO's right-hand person in all money matters and oversees the
financial analysis and decision-making of the firm. - Answer What does the CFO do?
Making investment decisions - Answer Which task does a financial manager perform
when assessing the costs and benefits of potential projects?
Private equity - Answer Which financial career focuses on investing capital into firms
whose shares are not currently sold on any public stock exchange?
, Wgu d076 exam with complete solutions
Making financing decisions - Answer Which task does a financial manager perform
when choosing to obtain a loan to purchase a piece of equipment for a new project?
Treasury, Corporate, and Stocks - Answer What are the three most important types
of securities?
To protect Investors - Answer Why does the SEC oversee Financial Markets?
To provide liquidity and determine prices - Answer What are the purposes of
financial markets?
Secondary market - Answer In which financial market are securities such as stocks
and bonds are traded after their initial issuance?
Money market - Answer What kind of market primarily allows institutions to borrow
and lend in the short term?
Primary market - Answer A local start-up company just hit its five-year anniversary
and is planning an initial public offering sometime this year. In order to issue public
stock, which market will the company use?
An institution that accepts and pays interest on deposits of money, as well as
extends loans - Answer What is a depository institution?
To conduct financial transactions such as investments, loans, and deposits - Answer
What is the primary role of financial institutions?
Investment bank - Answer A large corporation is looking to merge with another large
corporation. Which financial institution can help them do this?
Pension fund - Answer Which type of financial institution deals mainly with providing
for retirement through employers?
They use returns from stocks and bonds. - Answer How do insurance companies
pay policyholders when a claim is made?
Central bank - Answer Which financial institution ensures that a nation's economy
remains healthy by controlling the amount of money circulating in the economy?
Leading, Lagging, and coincident - Answer What are the three types of economic
indicators?
Lagging - Answer Unemployment rate is which type of economic indicator?
To regulate inflation and unemployment - Answer The Federal Reserve sometimes
adjusts the interest rate at which commercial banks can borrow from it. What is the
purpose of adjusting the interest rate?
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