What Does a Credit Card Bring Us? [A] "Charge it!" If those two words sound familiar, it is no wonder. Over 75 million Americans use credit cards to pay for everything from tickets on American Airlines to AAA car rental. And the number of cardholders increases every month. In fact, most Americans receive at least two or three credit card applications in the mail every month. The First Credit Card [B] At the beginning of the twentieth century, people had to pay cash for almost all products and services. Although the early part of the century saw an increase in individual store credit accounts, a credit card that could be used at more than one merchant was not invented until 1950. It all started when Frank X. McNamara and two of his friends went out to supper. The Significant Dinner [C] During the dinner, they discussed a problem of one of McNamara's customers who had borrowed some money but was unable to pay it back. This particular customer had gotten into trouble, when he had lent a number of his charge cards (available from individual department stores and gas stations) to his poor neighbors who needed items in an emergency. For this service, the man required his neighbors to pay him back the cost of the original purchase plus some extra money. Unfortunately for the man, many of his neighbors were unable to pay him back within a short period of time and he was then forced to borrow money from the Hamilton Credit Corporation. [D] At the end of the meal with his two friends, McNamara reached into his pocket for his wallet so that he could pay for the meal (in cash). He was shocked to discover that he had forgotten his wallet. To his embarrassment, he then had to call his wife and have her bring him some money. McNamara vowed never to let this happen again. [E] Merging the two concepts from that dinner, the lending of credit cards and not having cash on hand to pay for the meal, McNamara came up with a new idea—a credit card that could be used at multiple locations. What was particularly new about this concept was that there would be a middleman between companies and their customers. McNamara discussed the idea with his two friends and the three pooled some money and started a new company in 1950 which they called the Diners Club, and it was going to be a middleman. [F] The first Diners Club credit cards were given out in 1950 to 200 people (most were friends and acquaintances of McNamara) and accepted by 14 restaurants in New York. The cards were not made of plastic; instead, the first Diners Club credit cards were made of a paper stock with the accepting locations printed on the back. The Popularity of Credit Cards (1) Among Merchants [G] For a merchant, the answer is obvious. By depositing charge slips in a bank or other financial institutions, the merchant can convert credit card sales into cash. In return for processing the merchant's credit card transactions, the bank charges a fee that ranges between 1.5 and 5 percent. Typically, small, independent businesses pay more than large stores or chain stores. Let's assume that you use a Visa credit card to purchase a microwave oven for $400 from Richardson Appliance, a small retailer in Texas. At the end of the day, the retailer deposits your charge slip, along with other charge slips, checks, and currency collected during the day, at its bank. If the bank charges Richardson Appliance 5 percent to process each credit card transaction, the bank deducts a processing fee of $20 ($400x0.05=$20) for your credit card transaction and immediately deposits the remainder ($380) in Richardson Appliance's account. Actual bank fees are determined by the volume of credit card transactions, total dollar amount of credit sales, and how well the merchant can negotiate. (2) Among Consumers [H] For the consumer, credit cards permit the purchase of goods and services even when the funds are low. Today most major credit cards are issued by banks or other financial institutions in cooperation with Visa International or MasterCard International. The unique feature of bank credit cards is that they extend a line of credit (信用贷款值最高限额) to the cardholder, much as a bank's consumer loan department does. Thus credit cards provide immediate access to short-term credit for the cardholder, who instructs the bank to pay the merchant immediately and pay back the bank later. Of course, the ability to obtain merchandise immediately and pay for it later can lead to credit card misuse. Today the average American cardholder has a credit card balance in excess of $2,000. And with typical financial charges ranging from 1 percent to 1.5 percent a month, you can end up paying large finance charges. For example, if you carry a $2,000 balance on your credit card and your credit card company charges 1.5 percent a month, your monthly finance charge will be $30 ($2,000×0.015 = $30). And the monthly finance charges continue until you manage to pay off your credit card debt. Credit Card: Friend or Enemy? [I] A credit card can be your friend because it can get you through unexpected emergencies. And if there is a problem with the products or service you purchase with your credit card, you have an opportunity to withhold payment by asking the credit card company to "charge back" to the retailer until the dispute is settled. Monthly credit card statements can also help you keep your records in order. Finally, if you make payments on time, the card helps you to establish a good credit history. [J] A credit card can be your enemy because it is an invitation to purchase items you really do not need. The credit card companies' continuous offers of low minimum payments, cash advances, and even months without payments may seem like a way to skate through a money crunch. In reality, your finance charges and fees only increase, and you go deeper into debt.

Time Pattern in America [A] Susan Anthony has an eight-to-five job with two 15-minute coffee breaks, a one-hour lunch break, scheduled appointments and weekly deadlines. Every time she enters and leaves her office building she "punches" the clock. Although she is not aware of it, her workday is strongly influenced by her culture's attitudes toward time. [B] When travelers lack an awareness of how time is regulated in a foreign country, they can expect to feel somewhat disoriented (分不清方向或目标的). Since most people take time for granted, the effects of values, customs and social etiquette on the use of time are seldom examined. A culture that values achievement and progress will discourage people from "wasting" time. Highly efficient business people from these cultures may feel frustrated in a country where work proceeds at a slow pace. In religious societies, customs specify times of the day, week, or year for prayer and religious celebrations. If an individual tries to make an appointment during a sacred holiday, he or she could unknowingly offend a religious person. Social etiquette determines appropriate times for visits, meetings, and even phone calls. Arriving two hours late for an appointment may be acceptable in one culture, whereas in another, keeping someone waiting fifteen minutes may be considered rude. Promptness [C] Promptness is important in American business, academic and social settings. The importance of punctuality is taught to young children in school. Tardy (迟到的) slips and the use of bells signal to the child that punctuality and time itself are to be respected. An amusing report of schoolchild's experience with time appeared in a recent newspaper article. [D] As a child, my mother used to tell me how crucial it was to be at school when the first bell rang. Preparation for my "on-time" appearance began the night before. I was directed to go to bed early so I could wake up at 7 a.m. with enough time to get ready. Although I usually managed to watch my share of TV cartoons, I knew that in one hour I had to get dressed, eat breakfast, brush my teeth, comb my hair and be on my way to school or I would be violating an important rule of Mom's, the school's, or the world's. It was hard to tell which. [E] People who keep appointments are considered dependable. If people are late to job interviews, appointments or classes, they are often viewed as unreliable and irresponsible. In the business world, "time is money" and companies may fine their executives for tardiness to business meetings. Of course, it was not always possible to be punctual. Social and business etiquette also provides rules for late arrivals. Calling on the telephone if one is going to be more than a few minutes late for scheduled appointments is considered polite and is often expected. Keeping a date or a friend waiting beyond ten to twenty minutes is considered rude. On the other hand, arriving thirty minutes late to some parties is acceptable. [F] Respecting deadlines is also important in academic and professional circles. It is expected that dead lines for class assignments or business reports will be met. Students who hand in assignments late may be surprised to find that the professor will lower their grades or even refuse to grade their work. Whether it is a question of arriving on time or of meeting a deadline, people are culturally conditioned to regulate time. Division of Time [G] Time is tangible (可以感知的); one can "gain time", "spend time", "waste time", "save time", or even "kill time"! Common questions in American English reveal this concrete quality as though time were a possession. "Do you have time?" "Can you make some time for this?" "How much free time do you have?" The treatment of time as a possession influences the way time is carefully divided. [H] Generally, Americans are taught to do one thing at a time and may be uncomfortable when an activity is interrupted. In business the careful scheduling of time and the separation of activities are common practices. Appointment calendars are printed with 15-, 30-, and 60-minute time slots. A 2:30-3:00 interview may end in time for a brief break before a 3:15-4:00 meeting. The idea that "there is a time and place for everything" extends to American social life. Visitors who "drop by" without prior notice may interrupt their host's personal time. Thus, calling friends on the telephone before visiting them is generally preferred to visitors "dropping by". To accommodate other people's schedules, Americans make business plans and social engagements several days or weeks in advance. Future Time [I] Cultures tend to favor either a past, present, or future orientation with regard to time. A future orientation, encompassing (包括) a preference for change, is characteristic of American culture. The society encourages people to look to the future rather than to the past. Technological, social and artistic trends change rapidly and affect people's lifestyles and the relationships. [J] Given this inclination (倾向) toward change, it is not surprising that tradition plays a limited role in the American culture. Those who try to uphold traditional patterns of living or thought may be seen as rigid or "old-fashioned". In a society where change is so rapid, it is not uncommon for every generation to experience a "generation gap". Sometimes parents struggle to understand the values of their children. Even religious institutions have had to adapt to contemporary needs of their followers. Folk singers in church services, women religious leaders, slang versions of the Bible, all reflect attempts made by traditional institutions to "keep up with the times". [K] High rates of changes, particularly in urban areas, have contributed to a focus on the future rather than the past or present. Some Americans believe that the benefits of the future orientation are achievement and progress and stomach ulcers (溃疡) are the results of such a lifestyle. [L] As individuals in a culture, we all have an intuitive understanding about how time is regulated. Usually we do not think about the concept of time until we interact with others who have a different time orientation. Although individuals from any two cultures may view time similarly, we often sense that in another culture, life seems to proceed either at a slower or faster pace. Knowing how time is regulated, divided and perceived can provide valuable insights into individuals and their cultures.

The International Monetary Fund [A] In 1944, officials from forty-four nations gathered together for a historic meeting at Bretton Woods in the United States. They wanted to make provisions for the economic problems they expected to follow the end of the World War II. These efforts resulted in the formation of the International Monetary Fund, which was officially established on December 27, 1945, with 30 members. Membership in the IMF is open to every sovereign (主权) state that is willing and able to fulfill its obligation. The Fund has grown rapidly, and has 183 countries by the end of 2000. China resumed her membership of IMF in April 1980. Objective of the IMF [B] The IMF is established to promote international monetary cooperation and exchange stability, to avoid competitive exchange depreciation (贬值) and to provide temporary financial assistance to countries to help ease balance of payments deficits (赤字). Under the Bretton Woods System, all members joining the Fund had to define the exchange rate of their currencies in terms of gold, while one ounce of gold was equal to exactly 35 US dollars. [C] Since the abandonment of the Bretton Woods System, the Fund has agreed to allow each member to choose its own method of determining an exchange rate for its currency. The only requirements are that the member country no longer bases the value of its currency on gold and informs other members about how it is determining the currency's value. At any time, the Fund keeps on supervising (监督) exchange rate of the member states by asking for necessary data from the members and by collecting materials required to discuss and evaluate the prevailing exchange rate policies globally. Finance Resources of the Fund [D] In order to attain these objectives, however, very large financial reserves are needed. There are three financial resources for the Fund, namely, the quota (配额) subscriptions, the borrowing money and the trust fund. The quota is the heart of the International Monetary Fund. The size of the quota is set by the Fund authorities. It is based on the economic importance of a country by such indicators as population, international trade, and GNP. The quota of P. R. China on January 28, 2001, for example, is 4,687.2 million of SDRs (特别提款权). The member states need to pay subscription to the IMF, also called membership fee, which is the contribution that the member states must make to the IMF's funds, just like the share capital paid by a stockholder to join in a stock company. It is expressed in SDRs and equal in value to the member's quota. 75% of the subscription is payable in the member state's own currency and 25% is payable in SDRs or in one of the designated (指定) reserve currencies. Voting power and qualification to draw on the Fund are linked to the size of the quota. Quota is important because it determines the maximum amount that the member can draw out in times of difficulty. Quotas are reviewed every five years and adjusted accordingly. [E] Beginning with 1956, IMF activities increased sharply, mainly because of large drawings by the United Kingdom to cope with various crises of the British monetary system. Since then steps have been taken to strengthen the Fund's resources. Besides four general quota increases, the Fund has also sold gold to its principal members to increase its holdings of their currencies. In 1962, the Fund entered into "general arrangement to borrow". In these, the leading nations agreed to lend it up to the equivalent of $6 billion. By borrowing money from member governments or their monetary authorities, the Fund assists special programs that benefit its members. In 1976, IMF decided to sell one-sixth of its gold at the market rate during four years and use the profit obtained as Trust Fund. The purpose was to provide prime loans to the low-income countries. Loan and Repayments [F] As an international regulatory and financing institution, the Fund is entitled to exercise supervision over the policies of its member countries' own currency with gold, or a currency acceptable to the Fund or SDRs. [G] First, normal credit. This is the most basic kind of loan provided by the IMF to solve the temporary difficulty with the member's balance of payments. The maximum amount of such a credit is 125% of the member's quota subscriptions and the term is three to five years. The Fund uses its financial resources to assist its members to resolve their balance-of-payments problems in a manner that is consistent with a stable international or national prosperity. The Fund conducts operations only with the ministry of finance, central bank, and similar financial institutions of its members. Whenever it makes a loan it provides foreign currencies or SDRs from its holdings to the borrower, and the borrower pays the Fund the equivalent amount in its own currency. A loan, called a drawing, thus consists of a member's purchase of foreign currencies or SDRs with its own currency. [H] Second, special faculties. To help the member countries solve some special problems, the Fund provides them some special facilities, such as the Oil Facility, the Trust Fund Facility, and the Structural Adjustment Facility. Each of the special faculties is targeted at a specific monetary problem. [I] Third, Repayments. Members undertake repayments to the Fund within a maximum of three to five years, which in certain cases can be extended up to ten years. Earlier repurchases are often made either voluntarily or according to a requirement that a member makes a repurchase if its gold and foreign exchange reserves increase sufficiently. Special Drawing Rights (SDRs) [J] The SDRs are special rights to borrow or draw from the IMF extended by the IMF to its member countries as an addition to the general drawing rights they already hold. SDRs do not represent actual money, but simply a form of credit. SDRs may be exchanged between member countries or between those countries and IMF. SDRs are distributed among member countries in proportion to their subscription to the IMF. At first the value of the SDRs was expressed in terms of gold. Since 1974, the SDR's value has been based on a basket of currencies whose allocation is reviewed every five years.