[MUSIC] For the first question the first statement is true. It is concise and eloquent in describing two kinds of money. Your money, debt. And my money, equity. Which is the essential difference between borrowing that results in debt and lending or investing that builds equity. The second statement, financial decisions allocate money for it's most productive use. Is also correct and repeatedly used to define the process. Where money flows to competitive ideas and productive goals that are expected to create value. Statements III and IV, refer to greed and crisis and these may apply sometimes but of course, they're not always true. So, that's why the best answer for this question is B. For question two, generally, majority refers to the length of time the security is outstanding. Now the first statement A, does not apply. Because our primary markets where securities are issued for the first time Whereas secondary markets are where existing securities are resold. Let's look at the second statement, B. Now this one is true, because money markets include securities that mature in less than one year. Whereas capital markets refer to securities that are very long or sometimes indefinitel. The third statement C, is also true, which refers to debt or loans that have fixed majorities and equity which never matures. And finally, statement D is incorrect, since the difference between the auction and the dealer markets. Is whether market participants are directly buying and selling between one another. Which is the auction market compared to buying and selling through a dealer, which has nothing to do with maturity. So, the best choice for this particular question is E. Question three, here, the first statement about profit and the second about earnings per share. Which is profit divided by the number of shares, are not always true. And this is, because profits and earnings per share are accounting inventions. And not real in the sense that investors do not actually become wealthier or poorer. So, accounting calculations follow conventions to satisfy a whole bunch of purposes. But they aren't necessarily accompanied by actual increases or decrease in the value. Now the third statement, refers to stakeholders whose interests are typically protecte by legal means. For example, bond holders, they have access to an indenture, which states that they must be paid interest on their bonds. Otherwise, they can force the company into bankruptcy. Or, if we look at another stakeholder, employees for example, they must be paid their salaries or they can sue the company. So this leads us to the fourth statement, which is considered the best answer. Because ultimately, it is the owner or shareholder who takes on the true risk and have invested in the firm. And expect increases on that investment, which is of course, the share price. The fifth statement of maximizing corporate and social responsibility. Of course, that is appropriate and it's important but it is not the primary motivator. That drives the majority of profit-seeking, wealth-maximizing farms. So ultimately, it's about values, and owners who control the farm, want to see their investments appreciate in value. Question number 4. We have actually seen free markets to be associated with low, not high levels of unemployment, inflation, and interest rates. So, the first statement is false. On the other hand, free markets have also produced repercussions, as was stated in the video. And have resulted in extreme inequity between the so-called 1% and the rest. With the former owning and controlling the overwhelming proportion of wealth created in the economy. We've also seen a long period of debt accumulation at all levels, including public, private and government debt. Since B and C are true statements, the correct answer is therefore E. Finally, question number 5. As mentioned in the video Money Flows, Follows Debt. Historically, the single most important predictor of a market crash is, when consumers, corporate, and governments. Take on too much debt, or simply stated, there's too much borrowed money in the system. These deep pools of debt manifest themselves in a crisis that must ultimately absorbed by somebody. Usually the taxpayer, which in a nutshell, is the story of most market crashes. This means that when significantly more money is flowing into debt, instead of into good ideas and sound investment. We have conditions that trigger dramatic market crashes. These conditions are exacerbated when the rich get richer without simultaneously strengthening the key sectors of the economy. So, without the foundational strength in the real economy, markets are less resilient and less able to sustain downturns and shocks.