5

Because of a change in regulation about how different accounts are to be recorded. That change was stated in the Financial Accounting Statements No. 166. If you look into Notes on Data relating the "Assets and Liabilities of Commercial Banks in the United States - H.8", you find the following statement from April 9, 2010: As of the week ending March 31, ...


5

These papers look relevant, to one degree or the other: Karlan, D., & Zinman, J. (2009). Observing unobservables: Identifying information asymmetries with a consumer credit field experiment. Econometrica, 77(6), 1993-2008. The authors write:"We estimate the presence and importance of hidden information and hidden action problems in a consumer credit ...


4

This left me wondering what happens to the wider economy when people decide en masse rather than spending their disposable income on consumer goods/services, to instead pay down their debt and save/invest? tl;dr: Answer depends on the situation/time horizon you are talking about. In long run increasing saving and investment will have no negative impact on ...


2

You might call Graeber's theory of money as something emerging from a system of compensation from the harm of others. The Chartalist's say the state is what makes money, they demand taxes be paid in money, this gives money value, and then the state makes money which it spends on what it wants. The Chartalist contribution turns on the recognition that ...


1

My hit from Google Scholar (had to go to the bottom of page 1 for this one!) is Macro-Economic Growth,Enterprise Competitive Status and Trade Credit Policy Abstract: This paper investigates the effect of macro- economic growth and enterprise competitive status on trade credit policy from suppliers with trade credit's perspective,and the moderate effect of ...


1

Yes of course you are right about both of your points. The fee charging the credit card POS transaction is about 2% to 3% depending on the company. The fee charging to debit card transaction is about flat 25 cents or lower. For online transaction, the credit card fee can be as high as 4%, and the debit card fee can be negligible. Banks make more money on ...


1

One initial point: you refer to "printed money", which would normally be restricted to currency in circulation (notes and coins); the parts of the money supply that are electronic are literally not printed. Borrowing on a credit card creates a credit card receivable, which is not normally considered part of most money supply figures. However, if it were ...


1

By getting into a credit card contract, you effectively obtain a revolving credit limit, essentially a loan that once paid is again available (in contrast, under a debit card contract you only get the facilitation of "plastic money/carry no cash", but you are contractually obliged to fully pay the balance on the date due. Diner's Club, the first card, was ...


1

From a marketing point of view it's a very effective way of acquiring customers. And you raise a good point, people often do forget these things, so banks can also profit that way.


1

Basel II opened the possibility towards "your individual interest rate" by allowing (and encouraging) banks to use more advanced methods of estimating Credit Risk, individualizing even, customer-per-customer, for example using Advanced-Internal ratings-based approach. This means that the banks can lower interest rates towards clients that score better ...


1

While its difficult to pinpoint an answer to the question, here are some ideas/sources id consider helpful/interesting. Video: How The Economic Machine Works by Ray Dalio (30 minute presentation) https://www.youtube.com/watch?v=PHe0bXAIuk0 Book Titles: Capital in the Twenty-First Century Fault Lines: How Hidden Fractures Still Threaten the World Economy ...


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