Asked by Logan Robinson on May 30, 2024
Verified
Effective usury laws cause
A) a surplus of money in money markets.
B) the quantity of money demanded to be brought into balance with the quantity supplied.
C) the quantity of money supplied to exceed the quantity demanded.
D) a shortage of money in money markets.
Effective Usury Laws
Laws designed to set maximum interest rates that can be charged on loans, to prevent lenders from charging excessively high rates.
Money Markets
Financial markets for short-term borrowing and lending, dealing in securities such as Treasury bills and commercial paper.
- Review the outcomes of usury statutes on economic performance, with a special emphasis on their role in loan procurement and market activities.
Verified Answer
ZK
Zybrea KnightJun 03, 2024
Final Answer :
D
Explanation :
Effective usury laws, which set a maximum interest rate that can be charged, often result in a shortage of money in money markets because lenders are less willing to lend at the artificially low rates, leading to a situation where the quantity of money demanded exceeds the quantity supplied.
Learning Objectives
- Review the outcomes of usury statutes on economic performance, with a special emphasis on their role in loan procurement and market activities.