BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Detailed explanation-1: -plural usuries. : the lending of money with an interest charge for its use. especially : the lending of money at exorbitant interest rates. : an unconscionable or exorbitant rate or amount of interest. specifically : interest in excess of a legal rate charged to a borrower for the use of money.
Detailed explanation-2: -A usury interest rate is an interest rate deemed to be illegally high. To discourage predatory lending and promote economic activity, states may enact laws that set a ceiling on the interest rate that can be charged for certain types of debt. Interest rates above this ceiling are considered usury and are illegal.
Detailed explanation-3: -For loans less than $500, 000 the limit is 18% and for loans greater than $500, 000 is 25%.
Detailed explanation-4: -What is Usury? Usury describes an act of lending money to borrowers with high and exorbitant interest rates. The interest rates of money borrowed under usury agreement is often higher than what the law permits.