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I want this solution.. Question No. 1: (5+5= 10 Marks) 1- a- Choose the Right answer from the options provided for the following questions: (5marks)

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Question No. 1: (5+5= 10 Marks) 1- a- Choose the Right answer from the options provided for the following questions: (5marks) Setting of the money supply by policymakers in the central bank. a- Controlling interest rates b- Monetary policy C- Federal Reserve d- Currency 2- A person prefers investing in stocks which returns are uncertain. a- Risk-averse b- Risk-manager C- Risk-lover d- None of the above 3- A low rate of interest can investments? a- discourage b- decrease C- encourage d- None of the above 4- Which one is a tool of the Federal Reserve? a- Banking for banks b- Controlling inflation c- Banking for the government d- Selective credit controls 5. sanansaannis a promise by a bank to lend the cardholder money with which to make purchases. a- Debit Card b- Money exchange C- E-Money d- None of the above b- Determine whether the sentences are True Or False (5marks) 1- Stabilizing the economy is the primary function of Commercial banks ( ------ ---) 2- The Credit creation activity can raise aggregate demand which leads to more production in the economy 3- Risk aversion is the difference between the return on a risky asset and less risky asset, which serves as compensation for investors to hold riskier securities ( --------------) 4. The transfer of risk occurs in the capital markets ( - 5- The tighter the probability distributions of expected future returns, the higher the risk of a given investment (-------------- ). Question No. 3: (15marks) Consider the following two companies and their forecasted returns for the upcoming year: Outcome 1 Probability Return Company A 100% 8% Company B 50% 12.5% Outcome 2 Probability Return 50% 5.5% 1. What is the standard deviation of the returns on each company's stock (Company A, and B) (write all formulas) (12 marks). 2- Of these two stocks, which is riskier? Justify your answer (3 marks). Company A Company B Re b Company is riskier because... Question No. 4: (10marks) Surf the Internet and collect information about Central Bank of Oman (CBO). Then organize your findings into paragraphs (write 2 full pages at least). Formatting: Paragraphs, titles with numbers in bold, 1.5 line spaces, Time New Roman etc. (2.5marks). Information collected the sequences of your ideas (definition, historical and important facts...) (5marks). Creativity: The presentation of the ideas, (summarizing ideas into figures and tables etc.) (2.5marks)

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