1. The difference between the changes in the market value of assets and market value of liabilities for a given change in interest rates is, by definition, the change in the FI's net worth.

   True

   False

2. Competition from internet-based and electronic exchanges has led to a decrease in profits of market making.

   True

   False

3. A mutual fund has the following share characteristics: Shares are offered at the NAV with no front-end load, a 12b-1 fee of 1 percent is charged, a back-end load of 1 percent is charged only if the shares are sold by the investor within one year of purchase, and the shares do not convert to any other class of shares. These shares would be classified as

   		Class A shares.
   		Class B shares.
   		Class C shares.
   		Class D shares.
   		either Class A or Class C shares.