The assignment for this week had two parts:

Part One:

Find the daily average interest rate for all variable rate credit cards: 20.15%. Then calculate the interest you would have to pay on a $600 credit card balance compounded monthly over six months: $105.96

Part Two:

Write 300 words on a government regulation that affects interest rates, then give your opinion on that regulation:

I did have some trouble with this one, but here is my effort: (more like 200 words)

The Federal Deposit Insurance Act is a law that establishes the FDIC. The FDIC stands for the Federal Deposit Insurance Corporation. The FDIC insures bank deposits of up to 250,000 dollars. The FDIC sets limits on the interest rates that banks can set.

One of the problems with the FDIC is that it discourages banks from having better security. The banks don’t care about their security as much because if their money is stolen, the government will bail them out. It also discourages the people from pushing the banks to be better, because they know that their money will be safe. The banks could have had better insurance or their own policies about this issue, but the FDIC restricts that too.

The FDIC only insures deposits of up to 250,000 dollars, which would discourage people from saving their money in banks.

In summary, the FDIC is an unnecessary government agency that restricts banks and the people that use them.