Master because you can never restore log backups of the master database (it can't be restored WITH NORECOVERY)
Model set to whatever you want new databases to have, default is full, but that's just the default
MSDB is simple because it's the simplest option, set it to full if you need log backups of the jobs/job history, etc in there.
Gail Shaw
Microsoft Certified Master: SQL Server, MVP, M.Sc (Comp Sci)
SQL In The Wild: Discussions on DB performance with occasional diversions into recoverability
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