Which statement is true?

Question

Quizplus · Accepted Answer

Usury laws set a maximum limit on the interest rate that lenders can charge on loans. If this maximum limit is set too low, lenders may opt not to lend at all, particularly to high-risk borrowers. Thus, borrowers may be prevented from getting loans, even if they are willing to pay higher interest rates. Therefore, option B is the best choice as it captures this aspect accurately. Option A is incorrect as it assumes that usury laws allow for very high-interest rates, which is not the case. Option C is incorrect as it is not clear how usury laws make borrowers into lenders. Option D is incorrect as usury laws can have an impact on borrowers, as explained in option B.

Which Statement Is True