Many States Have Laws That Limit the Maximum Amount of Interest

question 16

Multiple Choice

Many states have laws that limit the maximum amount of interest that a lender can charge a borrower.Such a law is an example of a(n)

• A) equilibrium price.
• B) price ceiling.
• C) price floor.
• D) black market price.
• E) ration price.

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Definitions:

Merchandise

Goods brought into a store for resale to customers.

Purchase Discounts

Reductions in price given by a supplier to a buyer for early payment within a specified period.

Purchase Discounts Lost

The additional expense a company incurs when it fails to take advantage of discounts offered by suppliers for early payment.

Voucher Register

A voucher register is a record keeping system where vouchers are indexed and stored, detailing the payment of a transaction.