WGU D076 EXAM QUESTIONS AND
ANSWERS UPDATED (2024/2025)
(VERIFIED ANSWERS)
Primary market - ANS ✓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 - ANS ✓What is a depository institution?
To conduct financial transactions such as investments, loans, and deposits -
ANS ✓What is the primary role of financial institutions?
Investment bank - ANS ✓A large corporation is looking to merge with another
large corporation. Which financial institution can help them do this?
Pension fund - ANS ✓Which type of financial institution deals mainly with
providing for retirement through employers?
They use returns from stocks and bonds. - ANS ✓How do insurance
companies pay policyholders when a claim is made?
Central bank - ANS ✓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 - ANS ✓What are the three types of economic
indicators?
WGU D076
, 2
WGU
Lagging - ANS ✓Unemployment rate is which type of economic indicator?
To regulate inflation and unemployment - ANS ✓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?
It may indicate an economic downturn. - ANS ✓What would an inverted yield
curve signal?
They are analyzed during economic shifts to provide information about the
current state of the economy. - ANS ✓In what way are coincident indicators
useful?
To protect investors - ANS ✓Which responsibility is a focus of the U.S.
Securities and Exchange Commission?
Investment institutions - ANS ✓Which type of financial institution provides
individuals and firms access to financial markets?
Private equity - ANS ✓Which financial institution includes entities that receive
money from institutional investors and wealthy individuals to buy troubled
companies to improve them and earn returns by selling them or going public?
Leading - ANS ✓Yield curve is which type of economic indicator?
Legal - ANS ✓Which type of error would result in a set repercussion or penalty
given by the government?
Moral - ANS ✓Lucas is a financial advisor working for Bullzai, Inc. He is faced
with a dilemma. Bullzai has started changing its practices in order to increase
profit. As a financial advisor, he is now supposed to suggest to clients to invest in
portfolios that will not do as well as the portfolios that Bullzai is invested in. This
WGU D076
, 3
WGU
is an accepted practice done by other businesses in the industry, and it complies
with all standards set by the government. However, Lucas knows that this
practice is not in his clients' best interest. What type of dilemma is Lucas facing?
An ethical action is based on accepted standards of conduct. - ANS ✓What
characterizes an ethical action?
Moral - ANS ✓Which term reflects a person's beliefs about right and wrong,
good and bad, or just and unjust?
Accounting - ANS ✓The system of recording, reporting, and summarizing past
financial information and transactions.
Accounts Receivable Turnover (AR Turnover) - ANS ✓An activity ratio found
by credit sales divided by accounts receivable.
Activity Ratios - ANS ✓A category of ratios that measure how well a company
uses its assets to generate sales or cash, showing the firm's operational efficiency
and profitability.
Additional Funds Needed (AFN) - ANS ✓Another name for the discretionary
financing needed or external financing needed. It represents the additional
financing needed given a firm's expectations for future growth.
Affirmative Covenants - ANS ✓A bond covenant that describes things the
company pledges itself to do in order to protect bondholders.Go To
Agency Costs - ANS ✓Costs that are incurred when management does not act in
the best interest of shareholders.
Agency Problem - ANS ✓When the agent (the management) does not act in the
best interest of the principal (the owners).Go To
WGU D076
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller DoctorKen. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.99. You're not tied to anything after your purchase.
