Interest Rates Are Positive Because

question 62

Multiple Choice

Interest rates are positive because

• A) people prefer future consumption over current consumption.
• B) people prefer current consumption over future consumption.
• C) usury laws require rates to be very high.
• D) banks are not competitive.

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Definitions:

Intentional Conduct

Actions undertaken with awareness and deliberate intent, often relevant in establishing liability or culpability in legal cases.

Negligence

A lack of exercising the level of caution that a reasonably careful person would have shown in similar circumstances, leading to injury or damage.

Protected Individuals

Persons who are afforded special protections under the law, often due to their status, such as minors, disabled persons, or protected witnesses.

Restatement View

A perspective or doctrine derived from the Restatements of the Law, legal publications that seek to distill the common law into a series of principles or rules.