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Question 1 (Mandatory) (2 points) Saved Adaptive expectations models rely on expectations of future events being formed solely on the basis of past experience

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Question 1 (Mandatory) (2 points) Saved Adaptive expectations models rely on expectations of future events being formed solely on the basis of past experience 1) True 2) False Question 2 (Mandatory) (2 points) In developing and transition economies the application of tools to effectively counter the problem of asymetric information is rarely a problem because most of the financial institutions are international in scope. 1) True 2) False Question 3 (Mandatory) (2 points) Transaction costs are of only minor consequence in most financial arrangements. 1) True 2) False

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