First gdb MGT411 Money & Banking 25 October 2012

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First gdb MGT411 Money & Banking 25 October 2012


Money and Banking(MGT411)

Announcement of Discussion Board


This is to inform that a Discussion Board will be opened under the link of GDB according to the following schedule:

Opening Date and Time: Oct 23, 2012 At 12:00 AM (Mid-Night)

Closing Date and Time: Oct 25, 2012 At 11:59 PM (Mid-Night)

Topic/Area for Discussion:
"Other Forms of Payments.”



Learning objectives: To understand the hidden costs associated with the use of credit card and its relationship with the core principles of money and banking.



Learning outcomes: It will enhance the ability of the students to understand the logic behind the operations of credit cards and the hidden cost associated with the use of these credit cards. It will also enable the student to understand that how the various costs associated with the use of these credit cards are related to the core principles of money and banking.



The Case:

Suppose you go to the market and purchase some goods using your credit card issued by your bank. Definitely the bank is providing you this facility in return for some profit. Keeping in view the core principles of money and banking, please explain, who is paying the extra money to the bank for providing this facility: you, merchant or both, and why? Support your answer with logical reasons.



Important Instructions:



1. Your discussion must be based on logical facts and should not exceed 80 words.

2. The GDB will remain open for 3 working days.

3. Do not copy or exchange your answer with other students. Two identical / copied comments will be marked Zero (0) and may damage your grade in the course.

4. Obnoxious or ignoble answer should be strictly avoided.

5. Questions / queries related to the content of the GDB, which may be posted by the students on MDB or via e-mail, will not be replied till the due date of GDB is over.