Which of the Following Occurs When a Party Gives a Loan

question 46

Multiple Choice

Which of the following occurs when a party gives a loan at an interest rate exceeding the legal maximum?

• A) No enforceable legal violation
• B) Interest prohibition
• C) Principle reduction
• D) Usury
• E) Plenary

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Definitions:

Canadian Polar Bear Diamonds

High-quality diamonds sourced from specific mines in Canada, known for their ethical sourcing and purity.

Trade Discount

A reduction from the listed price of goods or services offered to buyers in the business-to-business market to encourage purchase in larger quantities.

Real Estate Commission

The fee, typically a percentage of the sale price, paid to a real estate agent for their services in selling a property.

Selling Price

The amount of money for which a product or service is sold to the purchaser.