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Question (1) (6 Marks) 1. What was the purpose of the Securities Act of 1933? What was the purpose of the Securities Exchange Act of 1934? Do these laws prevent investors from making poor investment decisions? Explain. (2 marks) 2. Assume that countries A and B are of similar size, that they have similar economies, and that the government debt levels of both countries are within reasonable limits. Assume that the regulations in country A require complete disclosure of financial reporting by issuers of debt in that country, whereas regulations in country B do not require much disclosure of financial reporting. Explain why the government of country A is able to issuc debt at a lower cost than the government of country B. (2 marks) 3. Interpreting Financial News tests your ability to comprehend common statements made by Wall Street analysts and portfolio managers who participate in the financial markets. Interpret the following: 1. "The price of Apple stock will not be affected by the announcement that its earnings have increased as expected. 2. "The lending operations at Bank of America should benefit from strong economic growth