Chapter 7

Link : http://www.vancouversun.com/business/fp/story.html?id=1393636

Summary
The article talks about how the credit card companies have a 2% average fee for retail owners for the usage of the ability to offer credit cards as a way of payment. Before last June, the rate of interchange fees where ranged from 1.6% to 19% and premium cards at 2.3% to 2.5%. Theses percentages can affect the costs of small businesses that are trying to allow credit cards. If small businesses owner don't use the credit card machines, then they could lose some business because in modern days, many people use credit cards or debit cards because it’s an easier way or carrying money.

Relation
This relates to ch.7 because it is essential to have currency in order to continue on day-to-day business activities. Everyday things such as food, clothing, entertainment and other things, require money from people. The business sector desires money in order to get the kinds of services it wants. This need for money is referred to as a transactions demand. A transaction demand is the money required to accommodate a firm's expected cash transactions. The fact that there is an increase in the unemployment in our economy may be because the demand for money is not as high as it use to be years ago. Supposedly it is easier to earn quick cash on small odd jobs and many people don't want to work in the foods and beverages industry because it is seen as a "bad" job for those who don’t have good education. The supply of money in our economy is an important indicator of economic conditions. It shows the amount of purchasing power available.

Personal Reflection
I personally think that the usage of credit cards and debits cards are important for the circulation of money. Credit cards can be easily stolen but they allow people to borrow money which allows them to spend more money. The lent money will also be charged by the credit company so that they can receive money as well. The problem with credit cards is that they seem way too unsafe to carry because anyone can just use the credit card unlike a debit card. A debit care in my opinion is safer and better because you don’t have to pay for the loans part of a bill because you do not loan any money, a person would just spend their own money. Also, if a person were to have their debit card stolen, then the person would also have to know the debit card PIN number to allow access to the card owner’s cash box.