$2-1$ How does a cost$-$efficient capital market help reduce the prices of goods and services?

$2-4$ Indicate whether the following instruments are examples of money market or capital mar$-$ket securities$.$ a$.$ U$.$S$.$ Treasury bills b$.$ Long$-$term corporate bonds c$.$ Common stocks d$.$ Preferred stocks e$.$ Dealer commercial paper

$2-5$ What would happen to the U$.$S$.$ standard of living if people lost faith in the safety of the financial institutions? Explain.

$2-6$ What types of changes have financial markets experienced during the last two decades? Have they been perceived as positive or negative changes? Explain.

$2-10$ Explain whether the following statements are true or false.

a$.$ Derivative transactions are designed to increase risk and are used almost exclusively by speculators who are looking to capture high returns. b$.$ Hedge funds typically have large minimum investments and are marketed to institu$-$tions and individuals with high net worths. c$.$ Hedge funds have traditionally been highly regulated. d$.$ The New York Stock Exchange $($NYSE$)$ is an example of a stock exchange that has a physical location. e$.$ A larger bid$-$ask spread means that the dealer will realize a lower profit