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:

Social Disruption

Events or phenomena that profoundly disturb and alter the structures or functions of society.

Revitalization Movements

Social movements aiming to reform or revitalize a society by advocating for substantial changes in cultural or religious practices.

Cargo Cults

Millenarian movements observed primarily in the South Pacific, where indigenous groups have expected the arrival of material wealth brought by supernatural means.

Sun Dance

A ceremonial dance practiced by some Indigenous peoples of North America, characterized by significant personal sacrifice as a form of prayer for communal benefit.