14) Relative to mutual funds, hedge funds typically 1) provide lower returns II) have higher fees III) are only available to a few high net worth investors A) 1), II) & III) B)) & III) C) I) & 11) D) 1) & 110) E) None of 1), II) or III) 15) The era of bank panics in the United States was effectively ended by A) establishing the Fed as lender of last resort. B) implementing the gold standard. C) abandoning the gold standard. D) introducing deposit insurance. Short-Answer Questions (40 points total). 1) Investment Banks and Adverse Selection a. Explain what happened to the ownership structure of investment banks starting in the 80s up until (but not including) the financial crisis of 2007-2009? (3 points) b. Discuss two ways in which there has been an effort to reduce adverse selection in the financial markets. (2 points) 14) Relative to mutual funds, hedge funds typically 1) provide lower returns II) have higher fees III) are only available to a few high net worth investors A) 1), II) & III) B)) & III) C) I) & 11) D) 1) & 110) E) None of 1), II) or III) 15) The era of bank panics in the United States was effectively ended by A) establishing the Fed as lender of last resort. B) implementing the gold standard. C) abandoning the gold standard. D) introducing deposit insurance. Short-Answer Questions (40 points total). 1) Investment Banks and Adverse Selection a. Explain what happened to the ownership structure of investment banks starting in the 80s up until (but not including) the financial crisis of 2007-2009? (3 points) b. Discuss two ways in which there has been an effort to reduce adverse selection in the financial markets. (2 points)