What Was the Standard Interest Allowed for Merchants to Charge

question 51

Multiple Choice

What was the standard interest allowed for merchants to charge for their services?

• A) 3 percent, at first, but increased to 8
• B) 10 percent
• C) 15 percent
• D) 20 percent
• E) Rates varied so much that a representative average is incalculable.

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Definitions:

Ratification

The act of formally confirming or approving an agreement, treaty, or contract, making it officially valid.

Principal

The amount of money originally invested or loaned, upon which interest and other charges are calculated.

Unauthorized Act

An action taken by an individual or entity without proper authority or permission, potentially leading to legal consequences.

Agent

An individual or entity authorized to act on behalf of another, often in business or legal matters.