The state of Illinois enacts a usury statute. The purpose is to
A) establish a maximum rate of interest that may be charged for loans.
B) establish a minimum rate of interest that may be charged for loans.
C) prevent the misuse of money advanced as loans.
D) prevent the misuse of money paid back on loans.

Question

The state of Illinois enacts a usury statute. The purpose is to
A) ​establish a maximum rate of interest that may be charged for loans.
B) ​establish a minimum rate of interest that may be charged for loans.
C) ​prevent the misuse of money advanced as loans.
D) ​prevent the misuse of money paid back on loans.

Quizplus · Accepted Answer

A usury statute typically sets a maximum limit on the interest rate that lenders can charge on loans. This is done to protect borrowers from excessive interest rates and to prevent predatory lending practices. Therefore, option A is the correct answer. Options B, C, and D are incorrect because they do not accurately describe the purpose of usury laws.

The State of Illinois Enacts a Usury Statute