1. A customer is about to make a transaction on their credit card which would push their balance over the credit limit. What things would you consider before approving or declining such a transaction? 2. The customer wants to make a transaction of $300. Their current balance is $4800. Their credit limit is $5000. APR is 15%. Charge of borrowing is 3% for the balance. Interchange fee by MasterCard is 1.5% per transaction. Your data suggests that 98% of people pay their over-limit balance within 3 months. 2% default rate. In this case, for the $300 transaction, the customer starts paying $100 every month after the end of the first-month post-transaction. Would you approve this transaction? Why? (There was some other technical jargon here that I can't remember) 3. Research suggests that Capital one loses money majority of the time over-limit transactions are approved. Assuming Capital one writes off the over limit amount, why do you think the loss would be present? What would be the loss amount per transaction? 4. Capital one has millions of such transactions taking place every second. What initiatives will you take to to make the transaction approval system more efficient? What factors will you take into consideration? How would you oversee the project? 1. A customer is about to make a transaction on their credit card which would push their balance over the credit limit. What things would you consider before approving or declining such a transaction? 2. The customer wants to make a transaction of $300. Their current balance is $4800. Their credit limit is $5000. APR is 15%. Charge of borrowing is 3% for the balance. Interchange fee by MasterCard is 1.5% per transaction. Your data suggests that 98% of people pay their over-limit balance within 3 months. 2% default rate. In this case, for the $300 transaction, the customer starts paying $100 every month after the end of the first-month post-transaction. Would you approve this transaction? Why? (There was some other technical jargon here that I can't remember) 3. Research suggests that Capital one loses money majority of the time over-limit transactions are approved. Assuming Capital one writes off the over limit amount, why do you think the loss would be present? What would be the loss amount per transaction? 4. Capital one has millions of such transactions taking place every second. What initiatives will you take to to make the transaction approval system more efficient? What factors will you take into consideration? How would you oversee the project