WGU C201 BUSINESS ACUMEN
PRACTICE EXAM | QUESTIONS AND
ANSWERS GRADED A+ | LATEST A+ |
2024 GUIDE
What is the Federal Reserve System? - Correct Answer - The
US Central Bank. Responsible for regulating commercial banks,
providing bank related services for the government, providing
services for banks, and setting monetary policy.
How is the FED organized? - Correct Answer - The country is
divided into 12 districts which each have a reserve bank. The
board of governors have 7, a head and vice chair. Federal open
market committee sets monetary and interest rate policy. The
FED is designed to be politically independent.
List the 3 tools the FED uses to control the supply of money and
credit. - Correct Answer - Reserve requirements, discount rate,
and open market operations.
,Who Regulates banks? - Correct Answer - All banks have either
state or federal charters. Federally charted banks are regulated
by the FED, the FDIC and the Comptroller of the Currency. Stet-
charted banks are regulated by state banking authorities.
Define Insider trading. - Correct Answer - The use of material
nonpublic information to make an investment profit.
List 2 ways in which the securities markets are self-regulated. -
Correct Answer - Professional organizations such as the
National Association of Securities Dealers have codes of
conducts that members are expected to follow. Major financial
markets have trading rules and procedures to identify suspicious
trading activity.
Where do US banks rate compare with international banks? -
Correct Answer - Banks in Asia and Europe are generally much
larger than US Banks. In Fact, only 4 out of the world's largest 20
banks are based in the US.
, Do other countries have organizations that play roles similar to
those played by the federal reserve? - Correct Answer - Yes,
virtually all nations have central banks that perform many of the
same functions that he US Federal Reserve System does.
What is the structure of the finance function at a typical company?
- Correct Answer - The person in charge of the finance function
of a company has the title of Chief Financial Officer (CFO) and
generally reports Directly to the CEO. Reporting to the CFO are
the treasurer, the controller, and the vice president for financial
management.
Explain the risk-return trade-off. - Correct Answer - Financial
managers strive to maximize the wealth of their company's
shareholders by striking the optimal balance between risk and
return.
What 3 questions does a financial plan address? - Correct
Answer - What funds will be required during the planning period?
When will funds be needed? Where will the necessary funds be
obtained?
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