PART II$.$ TRUE$/$FALSE & BRIEF EXPLANATION $(3$ points, $0\mathrm{.}6$ point$/$each correct answer with explanation$)$Question $11.$ Required reserve ratio is a proportion of a bank's assets that are kept at central bank's vault.Question $12."$An insurance company recently pays the insurance benefit to a client with a first$-$stage lung cancer diagnosis". This is an evident case of the adverse selectionQuestion $13.$ Long position is usually referring to the position of existing current investmentsQuestion $14.$ Co$-$insurance is a kind of insurance product in which a policyholder shares a percentage of the losses along with the insurance company after the deductible has been paidQuestion $15.$ A defined contribution pension plan is a plan in which the employees $($participants$)$ could withdraw a predetermined, fixed rate of their periodic salary during their retirement.