Question

The conscious charging by a private lender of more than the maximum amount of interest allowed by law is known as:

A) Penury
B) Leverage
C) Usury
D) Assemblage

Answer 1

A usury law limiting interest rates to no more than 35% is likely to impact the amount of loans made and the interest rates paid.

Step-by-step explanation:

When a usury law limits interest rates to no more than 35%, it is likely to have an impact on the amount of loans made and the interest rates paid. The limitation on interest rates means that lenders cannot charge rates higher than the specified limit. This may make it less profitable for lenders to offer certain types of loans or to lend to certain borrowers who are considered riskier, resulting in a decrease in the amount of loans made. Additionally, borrowers may be more likely to seek loans from lenders who can offer lower interest rates within the legal limit.