Question

Problem 6

Answer 1

Introduction

The word "usury rate" relates to an interest income that is deemed exorbitant when compared to interests rates. They're frequently linked to unsecured consumer loans, especially those involving subprime customers.

The government, corporations, and people seeking loans are the customers in the loanable funds market. The providers are bankers and other financial institutions that want to lend money. These two combine to arrive at the optimal interest rate and loan quantity.