Among their many functions, financial institutions O A. Transformilliquid assets into liquid assets. O B. Reduce transactions costs through things like standard lending contracts. O C.Pool the funds of many small savers to make large loans. D.All of the above. What is the distinction between debt and equity markets? O A. Debt markets are the market for mortgages, loans, and bonds while equity markets are the markets for stocks O B. Debt markets are those that are used only by individuals and firms that are on the verge of bankruptcy while equity markets provide better borrowing terms to those borrowers that have excellent credit ratings O C. Debt markets are used primarily by those that are buying financial instruments using borrowed funds, while equity markets allow people to buy financial assets using only their own funds. O D. None of the above is correct The yield on commercial paper is always higher than the yield on a Treasury bill with the same maturity. This is because O A. cash flows are less valuable further into the future. B.risk requires compensation and the commercial paper carries MORE risk than the Treasury bill. .nsk requires compensation and the commercial paper cames LESS risk than the Treasury bill O D. there is no secondary market for commercial paper U.S. currency O A. is considered commodity money because it is backed by gold reserves in Fort Knox O B. is considered commodity money only in international transactions .is considered fiat money because it never circulates outside of the United States O D.is considered fiat money because the govemment gives it value as legal tender Credit default swaps: O A. Are traded on an exchange and marked to market daily O B. Allow the buyer to protect themselves from certain debt default risks. C. Typically involve exchanges of fixed versus floating interest rate payments OD.All of the above