Question: Explain generally how smart cards debit cards and prepaid cards
Explain generally how smart cards, debit cards, and prepaid cards differ from traditional credit cards.
Answer to relevant QuestionsWhat are the major expenses associated with making consumer loans? What is the average size of consumer installment loans at small banks? How does loan size affect loan rates that banks charge on consumer loans? Describe how a bank should apply an objective credit scoring model when evaluating consumer loan requests. Given the information in Exhibits 15.10 and 15.11 and in the text, indicate why you would or would not approve ...Suppose that you own a four year maturity Treasury bond that pays $ 100,000 in principal at maturity and $ 3,000 every six months in coupon interest. Use the features of the bond to explain what Treasury IOs and POs are. Provide one reason for using the bank’s investment portfolio to speculate on interest rate movements. Provide one reason against such a strategy. What do you believe about efficient markets, and how does this influence ...Explain how the composition of a small community bank’s investment portfolio differs, in general, from the composition of a large bank’s portfolio. Why might mutual funds be attractive to banks?
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