Fractional reserve banking takes its name from the fact that:
a. banks hold only a fraction of their reserves at the bank itself.
b. banks keep only a fraction of total deposits on reserve

The concept of economies of scope describes the savings acquired from simultaneous production of different products

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

Neoclassical economic models make simplifying assumptions about people's rationality and preferences for the following reasons, except:

A. These assumptions make the models mathematically elegant B. These assumptions allow the models to be conveniently solved mathematically C. These assumptions allow the models to generate quite precise predictions of behavior D. These assumptions allow the models to generate quite accurate predictions of behavior