1. I Banks can reduce the moral hazard issue as their monitoring costs are higher.

2. II Corporations raise most of their funds through indirect finance.

3. III Mutual funds cater wealthier and more sophisticated investors than Hedge funds.

4. IV Property-casualty (PC) insurance companies hold some amount for liquid assets as some of their liabilities are short-term unpredictable.

Which of the above statements are true?

(a) I only (b) I and II only

(c) III only (d) II and IV only

(e) IV only