Case example: analyzing an affinity credit card (ex . special card only available to members of a specific group) facts:

1) average card balance is $1000.

2) each card has a rate of 15%.

3) membership fee is $20 per card.

4) loss rate is 3%.

5) $25 operating cost per card.

6) $10 affiliation fee per card (cost to the group for access to members).

7) 6.5% cost of funds.

a. how much profit is generated per card?

Which of the following is an effective strategy when interest rates are falling? a. use long-term loans to take advantage of current low rates. b. use short-term loans to take advantage of lower rates when you refinance a loan. c. deposit to a short-term savings instrumentals to take advantage of higher interest rates when they mature. d.select short-term savings instruments to lock in earnings at a current high rates.

:; )write a paragraph of two to three sentences and describe what will happen to a society that does not have a productive workforce?

During which of the following phases of the business cycle does the real gdp fall? a. trough b. expansion c. contraction d. peak