In a fractional-reserve banking system, a bank
a) does not make loans.
b) does not accept deposits.
c) keeps only a fraction of its deposits in reserve.
d) None of the above is correct.
Ans: c) keeps only a fraction of its deposits in reserve.
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The Maastricht Treaty eliminated passport controls at borders with the European Union
Indicate whether the statement is true or false
Which of the following statements is false?
A) When marginal cost equals average total cost, average total cost is at its highest value. B) The marginal cost curve intersects the average variable cost curve and the average total cost curve at their minimum points. C) The difference between average total cost and average fixed cost is average variable cost. D) Firms often refer to the process of lowering average fixed cost as "spreading the overhead."