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The First National Bank Lends Simmons $1,000

Question 29

Multiple Choice

The First National Bank lends Simmons $1,000. Simmons agrees to pay the bank the original loan plus $1,500 interest within a six-month period. This is an example of a(n)


A) revolving loan.
B) usurious loan by the First National Bank.
C) price-fixing agreement.
D) exculpatory clause in a contract involving a loan of money.

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