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Dmitrij [34]
3 years ago
12

When consumers swipe a card, either debit or credit, to make a transaction with a merchant, the merchant pays an interchange fee

to the card-issuing bank. generally, the interchange fee for a debit card is 1% of the purchase amount, while for a credit card it is 1.6% of the purchase amount. in 2009, the average interchange fee was 44 cents. in december 2010, the federal reserve proposed capping that interchange fee to 12 cents per transaction. who are the three primary stakeholders in this proposal, and what do you predict their positions will be relative to this proposal?
Business
1 answer:
miv72 [106K]3 years ago
6 0

The three primary stakeholders are the banks, the merchants, and the consumers.

Banks = Against, since this would mean that they will be receiving less

Merchants = For, since they would be paying less

<span>Consumers = Generally unaffected. But I believe they would be more against the proposal because if interchange fees are capped, then the banks will find other ways to retrieve the lost revenues by other means, such as increasing the interest or etc.</span>

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Which of the following will improve your bargaining position with customers a. ​The product your team produces has become more c
exis [7]

"There are fewer close substitutes for the product your team supports"  will improve your bargaining position with customers.

<u>Option: B</u>

<u>Explanation:</u>

Bargaining is the procedure which is preferred by citizens not only with street shops but it is famous internationally too, where defense, economic trade deal, etc are signed between two different nations to corporate and shake hand of unity. Bargaining is more effective when one allow seller to know that the party itself have more substitutes if the product is not provided by the seller in appropriate rate.

For an instance, if India need to buy some rolling defense helicopters for nation from Russia but prices are high and United States is providing same material with lower price or may be with better rewards on buying from them.

3 0
3 years ago
A first-round draft choice quarterback has been signed to a three-year, $10 million contract. The details provide for an immedia
inessss [21]

Answer:

$8.31 million and No.

Explanation:

In this question, we have to find out the present value which is shown below:

= $1 + first year value ÷ ( 1 + discount rate) + second year value ÷ ( 1 + discount rate) ^ number of years + third year value ÷ ( 1 + discount rate) ^ number of years

= $1 + $2 million ÷ (1 + 10%) + ($3 million ÷ 1.10)^2  + ($4 million ÷ 1.10)^3

= $1 million + $1.82 million + $2.48 million + $3.01 million

= $8.31 million

No the package would not worth $10 million as its present value is $8.31 million

7 0
4 years ago
Terp Bank obtains a relatively large portion of its funds from conventional demand deposits as it creates many branches with man
lapo4ka [179]

Terp Bank obtains a relatively large portion of its funds from conventional demand deposits as it creates many branches with many employees to attract demand deposits. Its interest expenses should be relatively low while its noninterest; expenses should be relatively high.

Option B

<u>Explanation:</u>

A withdrawal deposit is a banking or any other financial institution balance whereby the depositor may, without any notice or notification, remove the deposited funds from those in the account within seven days.

An example of demand deposits is checking accounts. We require the depositor to withdraw money at any moment. The volume of transactions a creditor is allowed on these transactions is infinite (even though each transaction might be paid by a bank).

For buyers, deposits of demand are essential because sometimes they house funds for daily expenses. Under no scenario, depositors could not purchase items on-demand without informing the bank first.

8 0
3 years ago
Assume that salaried employees of Mayer, Inc., earn 2 weeks of vacation per year. The salaried employees earn a total of $160 ea
Dafna11 [192]

Answer:

Jan .7 Dr Vacation Benefits Expense $ 160

Cr To Vacation Benefits Payable $160

Explanation:

Journal entry for Mayer

Date Account Name Debit Credit

Jan .7

Dr Vacation Benefits Expense $ 160

Cr To Vacation Benefits Payable $160

( to record vacation pay expense.)

4 0
4 years ago
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QUESTION 5 of 10: Preparing a budget is:
zhenek [66]

Answer: A

Explanation:

It's an ongoing process

6 0
3 years ago
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