One of the problems in conducting a duration gap analysis is that the duration gap is calculated assuming that interest rates for all maturities are the same. That means that the yield curve is

Fractional reserve banking began as a result of the search for additional profits

a. True b. False Indicate whether the statement is true or false

Suppose that you consume only pizza, which costs $4 per slice, and Diet Pepsi, which costs $2 each. The table above gives your utility from consuming these two goods. If your income is $20, which of the following consumption combinations will you choose?

A. 2 slice of pizza and 6 Diet Pepsis B. 3 slices of pizza and 4 Diet Pepsis C. 5 slices of pizza and no Diet Pepsi D. 4 slices of pizza and 2 Diet Pepsis