The state of New York enacts a usury statute. With respect to different types of transactions, including ordinary loans, the purpose of the statute is to
A) set a maximum rate of interest.
B) regulate certain forms of gambling.
C) specify clauses that must be included in certain contracts.
D) prohibit certain contracts based on their subject matter.

Question

Quizplus · Accepted Answer

Usury statutes are regulations that limit the rate of interest that can be charged on loans. The purpose of the statute is to set a maximum rate of interest that lenders can charge borrowers, preventing lenders from charging exorbitant interest rates that would be harmful to borrowers.

The State of New York Enacts a Usury Statute