Which of the following terms describes the practice of lending money at unreasonably high interest rates, typically illegal under various consumer protection laws?

💡 Solution & Explanation

Usury is the illegal practice of charging exorbitant or unfairly high interest rates on loans, exploiting borrowers in financial distress. Modern banking regulations and moneylending acts place strict ceilings on permissible interest rates to curb this practice. Underwriting involves evaluating and assuming financial risk for a fee.