Question: Using the FRED economic database (https://fred.stlouisfed.org/), find the typical interest rate on a credit card. By searching for credit card rate, you should find Commercial

Using the FRED economic database

(https://fred.stlouisfed.org/), find the typical interest rate on a credit card. By searching for “credit card rate,” you should find “Commercial Bank InterAayainaooeese asjt u Rate on Credit Card Plans,Al lA ccounts.”

a.
b.
What is the typical interest rate on a credit card in 2016?
How does the credit card rate compare to other rates such as mortgage loan rates or government bond rates?
Search for “credit card charge off” and you should find a series “Charge-Off Rate on Credit Card Loans,A ll Commercial Banks”. Click Edit Graph and change the frequency to Annual. This series shows the percentage of loans that the banks have to write off as losses. In 2010 what percentage of loans were written off as losses?
Why is the credit card rate so much higher than other rates?

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