For each statement, state whether you believe the statement is true or false. Provide a brief explanation of your reasoning.

a)When a potential borrower misstates their income on a loan application, this is an example of a moralhazard.

b)When someone borrows $1000 from a bank, that person's net worth instantlydecreases.

c)An example of asset transformation is converting liquid checking deposits into less liquid home loans(mortgages).

d)If someone transfers funds from their checking account into a mutual fund that invests in stocks then that person's share of assets in M1 and M2 godown.