Final answer:
Credit cards, retail installment contracts, and consumer leases are typically exempt from usury laws, allowing lenders to charge higher interest rates based on the nature of these transactions.
Step-by-step explanation:
Credit cards, retail installment contracts, and consumer leases are typically exempt from usury laws. Usury laws are regulations that set a maximum limit on the interest rates that lenders can charge.
However, these laws often do not apply to certain types of transactions, such as credit cards and consumer leases.
For example, credit card companies can charge high interest rates because they argue that it is necessary to cover the potential losses from borrowers who do not repay their debt on time or at all.
Additionally, credit card holders can avoid paying interest if they pay their bills on time.
In conclusion, credit cards, retail installment contracts, and consumer leases are typically exempt from usury laws, allowing lenders to charge higher interest rates based on the nature of these transactions.