Risk can often be reduced by investing in a large number of projects

________________: Value to a particular individual (investor).

Fill in the blank(s) with the appropriate word(s).

Answer the following statement(s) true (T) or false (F)

1.If the FOMC wants to make a quick, quiet, and inexpensive change to influence the money supply, it is most likely going to use open market operations. 2.By raising the reserve requirement, the Fed can reduce the money supply. 3.The primary cause of bank failures in the early 1930s was poor bank management. 4.One of the potentially negative side effects of deposit insurance is that it may encourage banks to take greater risks. 5.Government deregulation was a contributing factor to the savings and loans crisis of the 1980s.