Teaching Teenagers about Sex in Schools Essay - 1805 Words

Introduction As millions of teens are heading back to school, they are going to be learning the same old stuff, the usual studies include-history, math, science. But many students and parent’s surprise, there will be an extra class included in the curricula: Sex Education. In most public schools, there is some form of teaching of sex education. However, there is an even bigger question that is arising. â€Å"What kind of sex education are our children getting and is it enough to help?† There is a huge national debate going on over whether the whole ordeal over if kids should or should not be taught in school about sex. It shouldn’t matter what side of the fence you are on or your school, what is important is to know how to†¦show more content†¦By the prohibition of the discussion of the certain topic, there have been less students learning about the topics such as pregnancy prevention and STD prevention than students have in the 1990s. At this time, there was around 750,000 adolescents were experiencing an unintended pregnancy, along with every one in four sexually active teens contracted a sexually transmitted disease annually. It goes far as some states trying and having succeeding in censorship or distort information for political purposes, â€Å"people become the instruments or tools of the state policies that deprive them of the knowledge and info necessary to make and implement decisions about the reproductive and to express the sexuality safely. It thus involves the state control over some of the most basic elements of what it means to be human.† (L.R Freeman, Censorship and Manipulation of Reproductive Health Information) Abstinence-only programs’ funding was greatly expanded when a welfare reform was passed in 1996. The Community-based Abstinence Education programs have provided grants directly from the U.S. Department of Health and Human Services to communities and many faith-based programs to help and even a third of f ederal programs was created for the use of abstinence only education in 2000. In many people’s beliefs, these abstinence-only programs are doing much more harm than good. Such programs are violating numerous human rights and ethical principles as these areShow MoreRelatedSex Education And Sexual Education1253 Words   |  6 Pageshave public schools teach sexual education classes, or teach abstinence education classes? Pregnancy rates in America are slowly decreasing, but are still extremely high. According to K. F. Stanger-Hall (2011), Pregnancy rates in America are more than double the rates of other countries with 72.2% per 1000 girls between the ages of 15-19 becoming pregnant. The best way to lower teen pregnancy is to teach about prevention in schools with sex education or abstinence classes. Teenagers need to learnRead MoreSex Education : A Part Of American Culture1566 Words   |  7 PagesFor decades, sex education in US public schools has been a debatable issue for a minority of people (Shindel Parish, 2013). Healthcare workers insist that with a rise in sexually transmitted infections and unwanted pregnancies among teenagers, sex education is desperately needed in school. On the other hand, there are some parents and other citizens who strongly believe that sex education is something that parents should be teaching to their children. These individuals feel that sex education coursesRead MoreSex Education Are Essential For Teens1479 Words   |  6 PagesSex Education is a controversial but extremely important topic. Yet, we are doing very little to address it. Teaching sex education in schools are essential for teens to help build a strong foundation of sexual health. Although sex education must begin at home, some parents feel uncomfortable talking about the topic with their children and they believe teaching their children about sex can end up encouraging them to engage in sexual intercourse. Due to that, parents and schools try to em phasize theRead MoreSex Ed By Anna Quindlen963 Words   |  4 Pagescollege before returning to the Times in 1977. â€Å"Sex Ed† by Anna Quindlen in the Wake Tech Reader is an article that distinguished her as being a feminist. Even though â€Å"Sex Ed† was written long ago, it is as relevant today as then because teens today are not much different from then. In Anna Quindlen’s essay, ‘Sex Ed,† she expresses that parents and teachers need to come together and talk to teenagers about sex. In Quindlen’s essay she talks about when she was sitting in a clinic in the poorest neighborhoodRead MoreShould Sex Education Be Taught? High School?997 Words   |  4 PagesTeenagers and sex are two words that are often heard together, whether we like it or not, teenagers are having sex. Some schools don’t teach sexual education and because of that students are suffering. There’s no way to make teenagers not have sex but there is away to teach them about having safe sex, that is why I believe that we need to require sexual education be taught in high school. According to the National Conference of State Legislatures, â€Å"Only 22 states require public schools to teachRead More Education Is Key: A Comprehensive Approach to Sex Education Essay1579 Words   |  7 PagesSex education is about informing students about sex so that they can make educated decisions when the time comes to have sex. Sex education helps students protect themselves from unintended pregnancies, STDs, and HIV/AIDS. Students should leave a sex education course with the right tools so they make informed decisions about their sexual health and well-being. The goal of sex education is to provide a student with as much information as possible so that they can use the skills they learned inRead MoreThe Adolescent Family Life Program Teaches Teenagers About Abstinence1365 Words   |  6 Pagesprogram teaches teenagers about abstinence. The AFL differs from other primary prevention programs, but also has complications to its solution for teaching teenagers about its a bstinence-only program. This paper is to display the effective approach of the AFL in how it contrasts from other programs, but also, how it can be revised. In the end, the program needs adjustment, from its abstinence-only education, in order for it to effectively teach adolescences the consequences of sex. Primary PreventionRead MoreThe Issue Of Sex Education1429 Words   |  6 Pagesteens are very common. Teenagers in schools across the US are at risk of getting pregnant. They may even have a sexually transmitted disease and not know it. Many teenagers and even some adults do not know a lot about sexual health. That is because schools are not giving out some of the most important information to their students in sex education classes. All public schools should require that sex education teaches more than only about abstinence and STI’s. First, schools need to make sure thatRead MoreUnited States has the Highest Rate of Teenage Pregnancies Essay1687 Words   |  7 Pagespregnancy, about 500,000 births per year from girls under twenty. Second in the statistic is Poland, who only has about 30,000 teenage births in a year. When the topic of sex arises, people become uncomfortable because it is a subject that is thought of as personal and secretive. However, people aren’t only uncomfortable with the subject because of it being taboo, people try to avoid the subject because they aren’t always informed correctly about it and don’t have a way to learn about it, excludingRead MoreThe Rate Of Unwanted Teenage Pregnancies And Sexually Transmitted Diseases1502 Words   |  7 Pagessafety precautions and informing teens about healthy sexual activity. Sexual Education is the act of educating others about intercourse, the anatomy of the human body, sexual reproduction, abstinence, and contraceptives. Elizab eth Boskey, a STD expert, believes that schools should teach sex education because of the positive effects it has on the students. However, Sol Gordon believes that the parents should be responsible for teaching their children about sex. Even though Elizabeth Boskey and Sol

The Effects Of Maternal Postpartum Depression On The...

In the article â€Å"The impact of maternal postpartum depression on the language development of children at 12 months†, the authors, Quevedo, Silva, Godoy, Jansen, Matos, Tavares Pinheiro and Pinheiro, studied the relationship between some factors related to maternal depression during the first year of a child’s life and the child’s language development process (Quevedo et al.,2011). They hypothesized that a child whose mother presented maternal depression would have a lower performance than a child whose mother presented only a brief depression or no maternal depression (Quevedo et al.,2011). The researchers conducted the research on 296 mother-child dyads (Quevedo et al.,2011). This was a longitudinal study where different methods were used to perform this research (Quevedo et al.,2011). First, they used a diagnostic interview postpartum and 12 months after giving birth to evaluate if mothers were depressed. Then, they assessed the children using a language scale of the Bayley Scales of Infant Development III (Bayley 2006; Quevedo et al.,2011). Finally, mothers filled out a questionnaire about their socio-economic status, delivery and the health of the baby (Quevedo et al.,2011). The questionnaire evaluated whether the baby was premature or not and the baby’s caretaker (Quevedo et al.,2011). The results indicate that the duration of postpartum depression affected negatively the language development of the child (Quevedo et al.,2011). Also, it was found that maternal age,Show MoreRelatedMaternal Depression Case Study1431 Words   |  6 PagesWojcicki et al. (2015) also focuses on a sample of low-income Latino mothers and children by examining the genetic impacts on Latino preschool children, who have been exposed to maternal depression. Utilizing genomic DNA samples from 108 four-year-old children and 92 five-year-old children and their mothers, Wojcicki et al. (2015) examines the telomere length within these children. Shorter t elomere length has been linked to health conditions, such as cancer, diabetes, and obesity in adults, so determiningRead MoreEffects of Postpartum Depression on Child Bearing and Rearing Family1357 Words   |  6 PagesEffects of Postpartum Depression on Child Bearing and Rearing Family Postpartum depression (PPD) is a major event occurring in eight to fifteen percent of the woman population after delivering their child (Glavin, Smith, Sà ¸rum Ellefsen, 2010). The symptoms and causes of PPD are similar to depression symptoms in other periods of life (Glavin et al., 2010). These symptoms may include feelings of helplessness and hopelessness, loss of interest in daily activities, sleep changes, anger or irritabilityRead MoreDepression And Anxiety786 Words   |  4 PagesSymptoms of depression and anxiety are common during pregnancy and greatly effect a women’s health behaviors. The impact of women’s mental health on alcohol use is very significant to examine as prenatal alcohol use, which is common and can have serious negative consequences for the evolving fetus. Elevated symptoms of depression and anxiety can increase risk for binge drinking during pregnancy. Alcohol use during pregnancy may be associated with extremely detrimental effects for the d eveloping fetusRead MoreChildhood Illness : A Look At Postpartum Depression1538 Words   |  7 PagesMaternal Mental illness: A look at Postpartum Depression, its new inclusion into DSM-5, and treatment issues Antonella Uribe John Jay College of Criminal Justice INTRODUCTION Sandra was a 26 year old mother of four children who had been married for eight years. She had given birth to her fourth child two months ago, with the help of a midwife. Due to her husband’s recent pay cut, and already difficult financial situation, Sandra did not receive any antenatal or postnatalRead MorePostpartum Depression : A Type Of Depression2258 Words   |  10 PagesAbstract Postpartum depression is a type of depression that women can experience after giving birth. It is similar to depression, but women also experience thoughts of harming the baby, feeling disconnected, or in general worry that they are not being a good mother (Centers for Disease and Control Prevention, 2013). When it comes to seeking help for this, most women can feel ashamed of what they are experiencing and may not seek the proper help they need. The purpose of this paper is to review theRead MoreThe Effects Of Parental Depression On Children1901 Words   |  8 PagesIntroduction According to the National Academy of Sciences, about 15 million children (one in five) in the United States live in households with parents who have major and/or severe forms of depression. Parental depression negatively affects a fathers’ and mothers’ caregiving, ability to physically support and nurture a child, and is associated with poor health and developmental outcomes for children of all ages, including prenatally. Depressed mothers are more likely than non-depressed mothers toRead MorePostnatal Depression Is A Clinical Depression That Lasts1329 Words   |  6 PagesPostnatal depression is a clinical depression that lasts for about a month (Sigelman Rider, 2015) and symptoms of postnatal depression include parents being irritable, lethargic, tired, insensitive and generally distant towards their children (Field, 2010; Liu et al., 2016; Ramchandani, Stein, Evans, O’Connor ALSPAC study team, 2005; Wachs, Black Engle, 2009). Prenatal depression can also b e a sign that the mother will experience postnatal depression (Parsons, Young, Rochat, Kringelbacht Read MorePostpartum Depression : Symptoms And Treatment Essay2158 Words   |  9 PagesPostpartum Depression is depression that occurs after performing childbirth. This condition is often mistaken for the â€Å"baby blues† which has similar symptoms such as tearfulness, extreme sadness, anxiety, self-doubt, and fatigue. However, the â€Å"baby blues† goes away within a few weeks after and unlike the â€Å"baby blues†, postpartum depression can cause suicidal thoughts, difficulty making decisions, and feeling too exhausted to get out of bed for hours. If postpartum depression is not treated properlyRead MoreThe Epidemiology Of Male Postpartum Depression2186 Words   |  9 PagesThe Epidemiology of Male Postpartum Depression Only in recent history have significant strides been made to understand and treat postpartum depression. While the psychiatric disorder was written as long ago as 700 BC, by Hippocrates, it was not officially recognized as a medical diagnosis until the nineteenth century. Even in today’s society, individuals tend to harbor ill feelings toward postpartum depression, likely due to cultural beliefs and miseducation. According to the U.S National libraryRead MoreMaternal Stress And Depression And Stress2020 Words   |  9 Pagessignificances for the fetus. Maternal stress occurs when the mother is exposed to psychosocial stressors during pregnancy (Kramer et al, 2009). The mother could also develop depression during or after her pregnancy. This mental illness affects the mother’s ability to function and cope with everyday life (NIHCM, 2010), thus affecting her relationship with her baby. Recent research evidence has highlighted that there is some overlap between the sympto ms of maternal depression and stress (Cheng Pickler

Legal Aspects of Professional Psychology Free Essays

Professional psychology has many complexities that set it apart from other recognized branches of psychology. The intricacies of professional psychology make it fodder for legal consideration. The patients and clinicians have an obligation to one another to adhere to the guidelines set forth according to the American Psychological Association (heretofore known as APA) that protects both parties’ rights. We will write a custom essay sample on Legal Aspects of Professional Psychology or any similar topic only for you Order Now In this paper, the legal aspects of professional psychology will be discussed in detail. The concepts of informed consent and psychological assessment/testing/diagnostics will be examined. The effects of legislation and competency will also be discussed as it pertains to professional psychology. The principle of informed consent is an integral component of the foundation of legal and ethical practice in professional psychology. According to the Encyclopedia of Human Genome: â€Å" Historically informed consent has its origins in two parallel strands of thought within moral philosophy and within law. Within moral philosophy, the concept of individual autonomy has become increasingly important during the last 250 years. It has been realized that there is normally not sufficient justification to override the considered decisions of competent persons† (2003). Across the world, legal systems have traditional beliefs regarding the prohibition of the manipulation of an individual’s body without their consent. However, in recent years these prohibitions have been expanded to include intangible components of a person such as their personal information. This concept is bolstered by the focus on basic human rights that is founded in legal theory. In an ideal situation people consenting to treatment or research as part of a psychological experience would be capable of making their own logical decisions about participation through the application of informed consent. If someone is found to be taking advantage of a person or group of people without the use of informed consent they may face stiff penalties in accordance with the governing laws of their jurisdiction which may result in the revocation of their professional license and/or imprisonment. For most people, the words informed consent brings to mind a piece of paper that one must sign in order to receive treatment or participate in some sort of study, but in actuality it is much more complicated. Informed consent involves supplying the participant or patient with all relevant information as it pertains to the study being conducted or treatment given. Secondly, the person delivering the information must ensure that the person receiving the information has a full and thorough understanding of what is being explained. This would mean that the person making the decision to participate in research or receive treatment is capable of making such autonomous decisions of consent. It is essential to ensure that the person receiving the information is not being coerced in any fashion to protect their human and legal rights, whether it is the decision to accept treatment or to refuse. It is also important to note that once given, consent may be withdrawn at any time at the request of the participant or patient. When obtaining informed consent it may be necessary to have the interested participant(s) undergo psychological assessment, testing and diagnosis to ascertain their suitability to receive treatment or participate in a study. However, one must be sure to conduct all of these practices fairly and indiscriminately so as not to produce biased or tainted results that violate and/or exploit the interested person(s) basic human rights. Clinicians should be impartial in their approach and avoid hasty generalizations when doing psychological assessments and testing, and especially when diagnosing patients. For example, while it is important to consider one’s demographics and upbringing in the assessment, testing and diagnostic process, a clinician should not let this be the sole basis for drawing conclusions, especially if their personal views and perspectives are at odds with the information presented. If a practitioner is found to be unethical in his or her application of testing/assessment and diagnostic practice they run the risk of facing legal action. Perhaps the most important aspect of professional psychology is that of confidentiality in the therapeutic relationship. Confidentiality means that a clinician may not reveal any nformation given by a patient or discovered by a fellow clinician during the treatment of a patient. Most Ethics Codes state that the information divulged to a clinician during the course of the patient-clinician working relationship is confidential to the highest degree and should not be taken lightly. The purpose of a clinician’s ethical duty to maintain patient confidentiality is to provide the patient with the means to feel free to produce candid disclosures of information to the practitioner with the knowledge that the he or she will uphold the confidential aspect of the information disclosed. Full disclosure enables the practitioner to diagnose conditions and illnesses properly and to treat the patient(s) accordingly. In return for the patient’s honesty and trust, the physician is expected to not reveal confidential communications or information without the patient’s express consent unless required to reveal the information by law. Confidentiality is paramount in the therapeutic relationship because it builds trust between the clinician and the patient, thus providing the client with safe place to explore their issues with discretion. The idea of confidentiality in professional psychology sets the tone for treatment. In the initial stages of treatment the clinician will establish this expectation with the patient so that all others aspects of the therapeutic relationship may evolve more smoothly. It is probable that the patient would not want to proceed with therapy without the promise of confidentiality. Legislative efforts of the federal government to ensure equality on laws mandating parity of mental health with physical health in terms of insurance coverage have been passed in 34 states and have been tremendously successful. However, the outcomes are disparaging due to the fact that our nation has and continues to spend less on mental health and substance abuse after parity than it did before, with the estimated costs plummeting at least $10 billion in recent years. Additional studies have shown that parity legislation has done nothing to reverse the steady decrease in the incomes of practitioners in the mental health field. â€Å"The managed behavioral care companies, fearing the return of runaway costs, put in place more draconian hurdles to accessing behavioral health than exist for physical health. Just as rent control results in housing shortages because landlords abandon their properties and new building is discouraged, parity is an excellent example of how economic â€Å"laws† can defy and circumvent legislation† (Cummings, 2006). Given the dismal state of the mental industry in terms of accessibility to resources and funding it is essential that practitioners exercise competency that may be proven to healthcare providers. In recent years, there has been an increasing focus on competency-based education, training, and credentialing in professional psychology. Competency-based training models are being utilized across the world to ensure that psychology professionals are able to apply the knowledge that they receive through instruction to their everyday practice. Accreditation committees in the United States and Canada shifted towards competency-based approaches towards the end of the 20th century. As a result, the accreditation of professional psychology training and academic curriculums is centered mainly on the program’s capacity to illustrate the method and to what extent foundational competencies are created and nurtured within those seeking to enter the field. Many organizations have acknowledged core, specialized, and foundational competencies as it pertains to professional psychology. Competence is recognized within a separate section in the 2002 modification to the APA â€Å"Ethical Principles of Psychologists and Code of Conduct†. This focus on competency makes professional psychology pliable and those within it capable of efficiency even in the face of changing standards. Professional psychology is a discipline that must remain flexible and able to adapt to the inevitable shifts in society. However, those practicing within its guidelines and doctrines must ensure that they fulfill not only their professional obligation to their clients but also meet the requirements of the laws that govern society. Practitioners must be highly competent and able to meet the criteria of APA standards as it pertains to professional psychology. Staying abreast of the legal rights of patients and practitioners is the responsibility of the professionals in this field to remain relevant and ethical. How to cite Legal Aspects of Professional Psychology, Essay examples

Loan Request Evaluation Essay Example For Students

Loan Request Evaluation Essay This report introduces a procedure that can be used to analyze the quantifiableaspects of commercial credit requests. The procedure incorporates a systematicinterpretation of basic financial data and focuses on issues that typicallyarise when determining creditworthiness. Cash flow information is equallyimportant when evaluating a firms prospects. Reported earnings and EPS can bemanipulated by management debts, are repaid out of cash flow not earnings. Thebasic objective of credit analysis is to assess the risk involved in creditextension to banks customers. Risk refers to the volatility in earnings. Lenders are concerned with net income or the cash flow that hinders a borrowerability to service a loan. Credit analysis assigns some probability to default. Some risks can be measured with historical and projected financial data. The keyissues include the following: 1. For what are the loan proceeds going to beused? 2. How much does the customer need to borrow? 3. What is the primarysource of repayment, and when will the loan be repaid? 4. What collateral isavailable? Fundamental credit issues: Virtually every business has a creditrelationship with a financial institution. But regardless of the type of loan,all credit request mandate a systematic analysis of the borrowers ability torepay. When evaluating a loan a bank can make two types of errors: 1. Extendingcredit to a consumer who ultimately would repay the debt. 2. Denying a loanrequest to a customer who ultimately would repay the debt. In both cases thebank loses a customer and its profit decreases. For this reason, the purpose ofcredit analysis is to identify the meaningful and probable circumstances underwhich the bank might lose. So a credit analyst should analyze the followingit ems: *Character: The foremost issue in assessing credit risk is determining aborrowers commitment and ability to repay debts in accordance with the termsof a loan agreement. An individuals honesty, integrity, and work ethictypically evidence commitment. Whenever there is deception or a lack ofcredibility, a bank should not do business with the borrower. It is oftendifficult to identify dishonest borrowers. The best indicators are theborrowers financial history and personal references. When a borrower hasmissed past debt service payments or has been involved in default or bankruptcya lender should carefully document why to see if the causes were reasonable. Similarly, borrowers with good credit history will have established personaland banking relationship that indicate whether they fully disclose meaningfulinformation and deal with subordinates and suppliers honestly. Lenders look atnegative signals of a borrower condition beyond balance sheet and incomestatement. For example: ? A borrowers name consistently appears on thelist of bank customers who have overdrawn their account. ? A borrowermakes a significant change in the structure of business. ? A borrowerappears to be consistently short of cash. ? A borrowers personalhabits have changed for the worse. A firms goals are incompatible with thoseof stockholders, employees, and customers. *Use of loan proceeds: The range ofbusiness loan needs is unlimited. The first issue facing the credit analyst iswhat the loan proceeds are going to be used for. Loan proceeds should be usedfor legitimate business operations purposes, including seasonal and permanentworking capital needs, the purchase o f depreciable asset, physical plantexpansion, acquisition of other firms. Speculative asset purchases and debtsubstitutions should be avoided. The true need and use determines the loanmaturity, the anticipated source and timing of repayment and the appropriatecollateral. A careful review of a firm financial data typically reveals why acompany deeds financing. *Loan amount: Borrowers request a loan before theyclearly understand how much external financing is actually needed and how muchis available internally. The amount of credit required depends on the use ofproceeds and the availability of internal sources of funds. The lender job is todetermine the correct amount such that a borrower has enough cash to operateeffectively but not too much to spend wastefully. Once a loan is approved theamount of credit actually extended depends on the borrower future performance. If the borrower cash flow is insufficient to meet operating expenses and thedebt service on the loan it will be called upon to lend more and possibly tolengthen the loan maturity. If cash flows are substantial, the initial loanoutstanding might decline rapidly and even be repaid early. The required loanamount is thus a function of the initial cash deficiency and the pattern offuture cash flows. *The primary source and timing of repayment: The primarysource of repayment of loans is the cash flows. The four basic sources of cashflow are the liquidation of assets, cash flow from normal operations, new debtissues, and new equity issues. Credit analysis evaluates the risk that aborrower future cash flow will not be sufficient to meet expenditures foroperations and interest and principal payments on the loan. Specific sources ofcash are typically associated with certain types of loans. Short-term, seasonalworking capital loans are normally repaid from the liquidation of receivables orreduc tion in inventory. Term loans are normally repaid out of cash flows fromoperations. A comparison of projected cash flows with interest and principalpayments on prospective loans indicates how much debt can be serviced and theappropriate maturity. *Collateral: Banks can lower the risk of loss on a loan byrequiring back up support beyond normal cash flow. Collateral is the security abank has in assets owned and pledged by the borrower against a debt in the eventof default. Banks look to collateral as a secondary source of repayment whenprimary cash flows are insufficient to meet debt service requirements. Having anasset that the bank seize and liquidate when a borrower defaults reduce loss,but it does not justify lending proceeds when the credit decision is originallymade. From a lender perspective, collateral must exhibit three features: -First,its value should always exceed the outstanding principle on a loan. -Second, alender should be able to easily take possession of collateral a nd have a readymarket for sale. Highly illiquid assets are worth far less because they are notportable and often are of real value only to the original borrower. -Third, alender must be able to clearly mark collateral as its own. When physicalcollateral is not readily available, banks often ask for personal guarantees. Onthe other hand, liquidating collateral is a second-best source of repayment forthree reasons: 1- there are significant transaction costs associated withforeclosure. 2- bankruptcy laws allow borrowers to retain possession of thecollateral long after they have defaulted. 3- when the bank takes possession ofthe collateral, it deprives the borrower of the opportunity to salvage thecompany. At last, a loan should not be approved on the basis of collateralalone. Unless the loan is secured by collateral held by the bank, such as bankCDs, there is risk involved in collection. A PROCEDURE FOR FINANCIAL ANALYSISThe purpose of credit analysis is to identify and define the lend ers risk inmaking a loan. There is four stages process for evaluating the financial aspectsof commercial loans: 1. Overview of management and operations. 2. Financialratio analysis. 3. Cash flow analysis. 4. Financial projections. During allphases the analysts should examine facts that are relevant to the creditdecision and recognize information that is important but unavailable. 1. Euclid Essay? Credit cards and other revolving credit: Credit cards are utilized topurchase goods and services on credit in contrast to debit cards, which are usedto withdraw cash from ATM (Automated Teller Machine). Revolving credit: anarrangement by which the borrower and repay as needed during a specific timeperiod, subject to maximum borrowing level. Credit cards and overlines tied tochecking accounts are the two most popular forms of revolving creditarrangements. Banks offer a variety of credit cards. While some banks issuecards with there own logo and supported by their own marketing effort, mostoperate as franchises of Master Card or Visa. All cards display the Master Cardand Visa logos along with the issuing bank name. The primary advantage ofmembership is that an individual bank card is accepted nationally andinternationally at most retail stores without the bank negotiating a separateagreement with every retailer. Some alternatives to the credit cards exist:-Debit cards: they are widely available but not attractive to customers. As thename suggests when an individual uses this card his or her balance at a bank isimmediately debited funds are transferred from the card user account to theaccount of the retailer. But there is a disadvantage in using it, the loss offloat, which explains why debit cards are not popular. -Smart cards: is anextension of the debit card and contains a computer memory chip that stores andmanipulates information. These cards can handle all purchasing that consumerprefers. -Prepaid cards: are a hybrid debit card in which consumers repay forservices to be rendered and receive a card again which purchases are charged. The advantage of this card is that the processing costs are low and there islittle risk. Credit cards are attractive because they provide higherrisk-adjusted returns than do other types of loans. Card issuers earn incomefrom three sources: -charging card holders annual fees, charging interest onoutstanding loan balances, and discounting the charges that merchants accept onpurchases. Consequently as banks have increased their competitive focus theyhave begun to lower loan rates and annual fees such that many customers canavoid fees entirely and pay interest at rates slightly above NY quoted prime. Credit card lending involves issuing plastic cards to qualifying customers. Thecards have pre-authorized credit limits that restrict the maximum of debtoutstanding at any time. Many cards can be used in electronic banking devices,such as automatic teller machines, to make deposits or withdrawals from existingtransaction accounts at a bank. Credit cards are becoming extremely attractive. Many banks view credit cards as a vehicle to generate a nationwide customerbase. They offer extraordinary incentives to induce consumers to accept cards inthe hope that they can cross-sell mortgages, insurance products, and eventuallysecurities. Credit cards are profitable because many customers are priceinsensitive. However, credit card losses are among the highest of all loantypes. The returns to credit card lending depend on the specific roles that abank plays. A bank is called a card bank if it administers its own credit cardplan or serves as the primary regional agent of major credit card operations. Anon-card bank operates under the auspices of a regional card bank and does notissue its own card. Non-card banks do not generate significant revenues fromcredit cards. The credit card transaction process: Once a customer uses a card,the retail outlet submits the sales receipt to its local merchant bank forcredit. A retailer may physically deposit the slip electronically transfer th einformation via a card-reading terminal at the time of sale. The merchant bankdiscounts the sales receipt by 2 to 5 percent as its fee. Thus a retailer willreceive only 97$ credit for each 100$ sales receipt if the discount is 3percent. If the merchant bank did not issue the card, it sends the receipt tothe card-issuing bank then bills the customer for the purchase. Most cardrevenues come from issuing the card that a customer uses. The bank earnsinterest at rates ranging from 6 to 22 percent and normally charges eachindividual an annual fee for use of the card. Interest rates are sticky. Thus,when money market rates decline and lower a banks cost of funds, the netreturn on credit card revenues. The remaining 20 percent is merchant discount. ? Overdraft protection and open credit lines: Revolving credit also takesthe form of overdraft protection against checking accounts. The customer mustpay interest on the loan from the date of the drafts receipt and can repaythe loan either by making direct deposits or by periodic payments. These loansare functional equivalent of loan commitments to commercial customers. Themaximum credit available typically exceeds that for overdraft lines, and theinterest rate floats with the banks base rate. ? Home equity loans andcredit cards: Home equity loans meet the tax deductibility requirements becausethey are secured by equity in an individuals home. Many of these loans arestructured as open credit lines where a consumer can borrow up to 75 percent ofthe market value of the property less the principle outstanding on the firstmortgage. Individuals borrow simply by writing checks, pay interest only on theamount borrowed and can repay the principal at a rate of the outstandingbalance. In most cases, the loans carry adjustable rates tied to the banks baserate. These credit arrangements combine the risk of a second mortgage with thetemptation of credit card, a dangerous combination. Home equity loans place asecond lien on a borrowers home. If the individual defaults, the creditor canforeclose so that the borrower loses his or her home. ? Non-installmentloans: A limited number of consumer loans require a single principal andinterest payment. The individual borrowing needs are temporary. Credit isextended in anticipation of repayment from a well-defined future cash inflow. The quality of the loan depends on the certainty of the timing and the amountanticipated net cash inflow from the sale. Consumer loans: Consumer loans areextended for a variety of reasons for example, the purchase of an automobile,mobile homes, home improvements, furniture and appliances, and home equityloans. Before approving any loan, a lending officer request informationregarding the borrowers employment status, periodic income, the value ofassets owned, outstanding debt, personal references and specific terms thatgenerates the loan request. The lending officer collects information regardingthe borrowers five Cs then he interprets the information in light of thebank lending guidelines and accepts or rejects the loan. In addition, banksemploy judgmental procedures and quantitative credit scoring procedures whenevaluating consumers loans. Recent risk and return characteristics ofconsumer loans: Historically, banks viewed themselves as being either wholesaleor retail institutions, fo cusing on commercial and individual customersrespectively. Recent developments, however, have blurred the distinction, astraditional wholesale banks have aggressively entered the consumer market. Theattraction is twofold. First, competition for commercial customers narrowedcommercial loan yields so that return fell relative to potential risks. Soconsumer loans provide some of the highest met yields for banks. Second,developing loan and deposit relationships with individuals presumably representsa strategic response to deregulation.