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Going by this definition of money, it is evident that credit cards do not qualify as money.
However, credit cards are still a common mode of purchase among the citizens because of three main reasons. Credit cards offer a simplified method of purchase for consumers, since they do not have to carry hard cash (Zandi and Singh, 2010). The second reason is that credit cards offer a quick method out of emergencies, since individuals do not have to travel long distances to find cash (Zandi and Singh, 2010). The credit cards benefits that come along with the use of the card is also an advantage, since most credit facilities expect an interest charge, so they offer incentives (Zandi and Singh, 2010).
According to Debt Resources (2012), the main impact of credit cards on the economy is the increase in debts in the economy, since many people accrue interest payments that they cannot afford to pay. Many of the debts that are accrued to credit cards end up being written off as bad debts, which reduces the credit history of most consumers in the market. This reduces the spending power of consumers, since they have to allocate their earnings to paying off debts, which in turn reduces the economic growth of a
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A Credit Default Swap (CDS) is a monetary swap agreement between parties designed to shift the credit exposure of unchanging income products (Choudhry, 2006). The agreement facilitates the lender or creditor to transfer credit from a third party to an insurer who agrees to insure the risk of default payment of credit.
Consequently, credit scoring models have been subjected to extensive research and studies more so in statistic. This has mainly been aimed at improving their accuracy in dealing with decision making when it comes to matters relating to issuance of credits to individuals.
Smart chips used in the information processing also helped in a remote-controlled access to integrated calibration of actions needed for the accomplishment of a given task at a given period of time. The essence of integrated circuit system lies largely in the operational accuracy, multi-spectrum information resourcing, effective specialization of categorical analysis of data and prompter accessibility to customer database related to the banking and related transactions.
(4 marks) Marginal rate of transformatio is as below UNs(C , h – Ns) – wUc(C , h – Ns) = 0 (1) zFNd(K , Nd) = w (2) We have UNs(C , l) – zFNd(K , h – l)Uc(C , l) = 0 Since p = zF(K , h – l) – wNd and G = T, from the budget constraint C = zF(K , h – l) – G (c) Setting MRS=MRT, solve the resulting equation algebraically for l as a function of G.
Microeconomics is concerned with the interaction between the individual buyers and the sellers and the factors which impact the choices the sellers and buyers make (OTTERMAN page 1-2). Microeconomics looks at the big picture hence the name micro which focuses on the national economy and there is provision of basic knowledge and how things are conducted in the business world.
13-14). A number of retailers and other service providers have introduced loyalty schemes over the past few years. These loyalty schemes usually involve the consumer being given a plastic card to which credit points can be added when the consumer makes a purchase.
her degree in any university and to the best of my knowledge and belief, contains no material previously published, written, or produced by another person, except where due reference is made in the text.
The study is an investigation of credit card fraud countermeasures as it
This will result in a movement towards point P, due to the extra net expenditures (J-W). Consequently, producers will be invigorated to increase their output; thus, leading to higher national income levels (Carlin & Soskice, 2006). With the increase in income, the
iding accurate and appropriate information in the Middle East region.The second objective of the company entails increasing funding in the next budget period by 200%. The funding will be provided by senate and will mainly be used for marketing. The funding will also be used to
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