QUESTION 44 1 points Save Answer Financial markets have the basic function of O bringing together people with funds to lend and people who want to borrow funds. O assuring that the swings in the business cycle are less pronounced. O assuring that governments need never resort to printing money. O both A and B of the above. O both B and C of the above. QUESTION 45 1 points Save Answer One way to extend the life of the Social Security Trust Fund is to increase FICA tax rates. O TRUE O FALSE QUESTION 46 1 points Save Answer A corporation acquires new funds when its securities are sold in the secondary market. O TRUE O FALSE. QUESTION 47 1 points Save Answer An important financial institution that assists in the initial sale of securities in the primary market is the O investment bank. O commercial bank. O stock exchange. O brokerage house. QUESTION 48 1 points Save Answer The purpose of diversification is to O reduce the volatility of a portfolio's return. O raise the volatility of a portfolio's return. O reduce the average return on a portfolio. O raise the average return on a portfolio. QUESTION 49 1 points Save Answer During 2008 - 2019 the Federal Reserve kept interest rates at historically low levels, this in turn exacerbated the Social Security funding problem. O TRUE O FALSE. QUESTION 50 1 points Save Answer Holding everything else constant, if the federal funds rate rises, the opportunity cost of excess reserves rises and banks will want to hold fewer excess reserves. TRUE FALSE. 1