Are the following statements true or false? Briefly discuss the

1. (a) Adverse selection results in the under-issuance of good securities.

   (2 marks)

2. (b) When a banks loans lose value, the banks capital also falls. (2 marks)

3. (c) Unlike tranched securitisations, pass-through securitisations do not encourage originator recklessness.

   (2 marks)

4. (d) Under Basel III, the regulators role with regards to bank capital adequacy management is minimal.

   (2 marks)

5. (e) In a semi-strong-form efficient market, technical analysis would be useless.

   (2 marks)