Questlon 3 Exchange traded derivatives are considered to be much less profitable to broker-dealers than OTC derivatives. Select one: True False Question4 Nowadays, the strong form of the efficient market hypothesis (EMH) is generally accepted to represent the real market. Select one: True False Question 5 Lehman Brothers demonstrated that illiquidity can turn into insolvency. Select one: True False Question6 An example of moral hazard would be if a person was well insured against a particular risk, then actively took part in the risky activity. Select one: True False Question7 If the prices of a certain asset class drop significantly, the resulting capital losses may endanger a large number of financial institutions. Select one: True False Question 8 As it turned out, Goldman Sachs was one of the last banks to utilize the TARP facility because it was worried about stigmatizing itself. Select one: True False Question 9 An extraordinarily wide bid-ask spread indicates that the market has essentially shut down. Select one: True False