Which of the following is true? Bitcoin is backed by gold and governments, and seemingly appeared "out of thin air" as the result of mathematics performed by so-called "miners" Civil libertarianslzenerally dislike the fact that bitcoin transactions can happen without revealing the sorts of personal data that credit card companies and other financial institutions gather. Bitcoin is an open source, centralized payment system that operates in a peer- to-peer environment without bank or central authority. Bitcoin could lower transactions costs, and it could create an opportunity for the digital purchase of goods with small value, and it could open markets where card access is limited.

b) Please explain the four main functions of the financial system.

Free rider problem is an issue that occurs when people who do not pay for information take advantage of the information that other people have paid for Banks reduce the free-rider problem in information production by A making private, nontraded loans so other lenders cannot benefit from the information they have collected about the borrower B. charging others for information about the financial condition of potential borrowers C. buying tradable securities with their depositors' funds D. serving as an intermediary that holds scarcely any nontraded loans

Describe the three stages of Money Laundering