2. Determine whether the sentences are True Or False (5marks)

1. Stabilizing the economy is the primary function of Commercial banks ( -------------- )
2. The Credit creation activity can raise aggregate demand which leads to more production in the economy ( -------------- )
3. Risk aversion is the difference between the return on a risky asset and less risky asset, which serves as compensation for investors to hold riskier securities ( -------------- )
4. The transfer of risk occurs in the capital markets ( -------------- )
5. The tighter the probability distributions of expected future returns, the higher the risk of a given investment (-------------- ).