Charge non customer for accessing their money

Assignment Help Business Economics

Reference no: EM13976415

You are an aide for the Senate Banking Committee Chairman. He comes to you with a bill that proposes setting limits on what ATM owners can charge non account holders, over and above what banks charge their own customers. Currently, large banks charge noncustomers an average fee of $1.35 per transaction in addition to the fees the customer’s own bank imposes. The Senator asks you to look at a proposal that would place a $0.50 cap on the fees ATM owners can charge noncustomer for accessing their money. If this legislation is enacted, what would be the likely effects?

Reference no: EM13976415

Questions Cloud

Plans to expand the human resource base of its operation : You are the manager of a firm that plans to expand the human resource base of its operation by hiring additional business school graduates over the next few years. That same article reports that the shakeup of upper-management is over at U.S. firms, ..

Discuss price elasticity of demand-cross-price elasticity : Discuss both the price elasticity of demand and the cross-price elasticity of demand conditions facing a firm in a monopolistically competitive industry. Include in your essay the role of advertising and the creation of brand loyalty.

Does omega operate in a perfectly competitive market : Omega Travel competes in the highly competitive market for travel. Consumers know that Omega has the best agents in the industry and offers superior service. Nonetheless, Omega earns zero economic profits because numerous competitors have entered the..

Consumer incomes increased : If shoes and socks are complements and both are normal goods, show graphically what would happen to the consumption of shoes and socks if the price of shoes decreased. consumer incomes increased.

Charge non customer for accessing their money : You are an aide for the Senate Banking Committee Chairman. He comes to you with a bill that proposes setting limits on what ATM owners can charge non account holders, over and above what banks charge their own customers. The Senator asks you to look ..

Compute the value of the appropriate test statistic : A phone manufacturer wants to compete in the touch screen phone market. He understands that the lead product has a battery life of just 6 hours. The manufacturer claims that while the new touch phone is more expensive, its battery life is more than t..

Homeowners reports having a home equity loan : In a recent poll of 700 homeowners in the United States, one in two homeowners reports having a home equity loan that he or she is currently paying off. Using a confidence coefficient of 0.95, derive an interval estimate for the proportion of all hom..

Marginal social cost of education-marginal private benefit : Consider the market for education. The marginal social cost of education (MSC) and the marginal private benefit of education (MPB) are given by the following equations where Q is the number of units of education provided per year. MSC = 10 + Q. Suppo..

Contributed to the rapid growth of the eurocurrency market : Factors that have contributed to the rapid growth of the Eurocurrency market include all of the following except

User Account

All Pages