ACTIVITY 11. Cardholders that accept Visa or Mastercard paythe issuer of the card a percentage of thetransaction. Fo example, for each Php 100charged on Visa cards, a cardholder mightreceive only php 98. Explain why Visa chargesthe fee and why the cardholder pays it.TipsYou should be able to use at least two core principlesin your answer.1. Suppose central bankers have figured out a wayto eliminate recessions. What financial andeconomic changes would you expect to see?Relate these changes to the core principle thatstability improves welfare.

Hi, since you have posted multiple questions, we will answer the first one, as per authoring…

Cardholders that accept Visa or Mastercard pay the issuer of the card a percentage of the transaction. Fo example, for each Php 100 charged on Visa cards, a cardholder might receive only php 98. Explain why Visa charges the fee and why the cardholder pays it.

Cardholders that accept Visa or Mastercard pay the issuer of the card a percentage of the transaction. Fo example, for each Php 100 charged on Visa cards, a cardholder might receive only php 98. Explain why Visa charges the fee and why the cardholder pays it.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Concept explainers

Credit card

A credit card is provided by financial institutions or banks, which permits a person to borrow money on a preapproved limit for purchases on a credit basis. The credit limit is decided by the institution and bank which issues a credit card depending on the person’s credit score and income. A cardholder can use the card for credit purchases, a balance transfer, cash advances.

Question

ACTIVITY 1
1. Cardholders that accept Visa or Mastercard pay
the issuer of the card a percentage of the
transaction. Fo example, for each Php 100
charged on Visa cards, a cardholder might
receive only php 98. Explain why Visa charges
the fee and why the cardholder pays it.
Tips
You should be able to use at least two core principles
in your answer.
1. Suppose central bankers have figured out a way
to eliminate recessions. What financial and
economic changes would you expect to see?
Relate these changes to the core principle that
stability improves welfare.

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