Which of the Following Is Not True of Usury Laws

question 135

Multiple Choice

Which of the following is not true of Usury laws that set maximum interest rates?

• A)They are designed to protect the consumer.
• B)They interfere with the market allocation process.
• C)They have an effect only if the market rate is higher than the legal maximum.
• D)They are analogous to a price floor.

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Definitions:

Reckless Drivers

Individuals who operate vehicles in a careless or dangerous manner, often violating traffic laws and putting themselves and others at risk.

Safety Devices

Equipment or systems designed to prevent accidents, injuries, and harm in workplaces, vehicles, or public spaces by reducing risks and hazards.

High Risk

Situations or investments that carry a significant possibility of loss or failure.

Low Risk

Pertaining to situations or investments that have a minimal likelihood of loss or failure.