1. Which statement about equity market capitalizations is correct as of the year 2005?

A. The equity market capitalization of Europe was greater than that of the United States.

B. The equity market capitalization of the United States was greater than that of the rest of the world's nations combined.

C. The equity market capitalization of Germany was the second largest in the world.

D. The equity market capitalization of the United States is the largest in the world, but it is not larger than the combined capitalizations of all the other countries in the world taken together.

2. Which statement is accurate about the investment patterns of U.S. versus those of European countries?

A. Both U.S. and European countries tend to prefer stock to bonds.

B. The U.S. is more risk averse, so bonds are preferred here, and stock is more preferred in Europe.

C. European countries tend to favor taking more risk, so they tend to prefer more equities, and the U.S. prefers more bonds.

D. Equities are favored in the U.S., while bonds, which are less risky, are preferred in European countries.