If a Loan Is Made at an Interest Rate Higher

question 26

Multiple Choice

If a loan is made at an interest rate higher than that allowed by state law, the lender is guilty of _______, which is defined as charging interest higher than the law permits.

• A) usury
• B) unconscionability
• C) adhesion
• D) speculation

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Definitions:

Hypotheses

Testable statements or predictions, often derived from a theoretical framework, that can be tested through empirical research.

Sample Mean

The average of a subset of a larger population, used to estimate the population mean.

Sample Data

Data collected or selected from a larger population, used in statistical analysis to make inferences about the population.

Variance

A statistical measurement of the spread between numbers in a dataset, indicating how much they differ from the mean of the set.