True or False (1 point each) mi + w 1. T The key function of financial markets is facilitating the flow of capital from savers to potentially productive users of savers' capital. 2. T Exchange Traded funds share features of both open end and closed end mutual funds. _ _Income taxes on mutual fund returns are collected from the mutual fund shareholders. Open end mutual funds represent the largest class of professionally managed "pooled investment" vehicles. The 2008 Financial Crisis was solely due to the elimination of the Glass Steagall Act in 1999. 6. Shareholders of corporations have unlimited liability for the acts of the companies in which they own shares. The primary classes of financial assets in capital markets are equity securities, debt securities and derivative securities. Arithmetic averages of annual investment returns accurately capture the impact of compounding. 9. _High return, low risk investments are readily available in financial markets. o Multiple Choice (1 point each)