Usury Laws Result in Banks Making Less Credit Available to Lower-Income

question 77

Multiple Choice

Usury laws result in banks making less credit available to lower-income households because

• A) higher-income households will pay a higher interest rate than lower-income households.
• B) loans made to higher-income households have no risk.
• C) loans to lower-income households are riskier than loans to higher-income households.
• D) the regulated interest rate does not adequately compensate the bank for the risk of the loan to a lower-income household.

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Definitions:

Modena Cathedral

A Romanesque cathedral in Modena, Italy, notable for its architectural significance and the sculptural works of Wiligelmo. It is a UNESCO World Heritage Site, exemplary of medieval church architecture.

Relief

A sculptural technique where the sculpted elements remain attached to a solid background of the same material, creating a raised effect.

Wiligelmo

An Italian sculptor of the Romanesque period, known for his work on the Modena Cathedral, notably its creation of biblical scenes in relief on the façade.

Moralia In Job

A significant early medieval commentary on the Book of Job, written by Pope Gregory I around the end of the 6th century.