A Major Purpose of Usury Laws Is to Make More

question 12

Multiple Choice

A major purpose of usury laws is to make more funds available to low-income borrowers. Economic analysis suggests that usury laws

• A) are effective in achieving this goal.
• B) allocate available funds to high-income borrowers.
• C) have no impact on the allocation of funds between high-income and low-income people.
• D) help low-income people only when the legal interest rate is above the market rate.

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Definitions:

Slavery Expanded

Refers to the growth and spread of the institution of slavery, particularly in the Americas, during the 17th, 18th, and 19th centuries as a result of the transatlantic slave trade.

Population

The total number of people inhabiting a particular country, area, or place, often analyzed for demographic purposes.

Cotton Gin

A machine invented by Eli Whitney in 1793 that quickly and efficiently removes cotton seeds from cotton fibers, greatly impacting the cotton industry and slavery in the United States.