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:

Oral Stop Payment

A verbal request made to a financial institution asking them to prevent the payment or processing of a check or financial instrument.

Written Stop Payment

A formal written notice given to a bank instructing it not to pay out funds under a specific check or transaction.

Recourse

A right or legal means to obtain repayment, compensation, or remedy in the event of a breach of contract or agreement.