The use of credit was uncommon prior to 1917 because laws prevented lenders from charging high interest rates,

Question

The use of credit was uncommon prior to 1917 because laws prevented lenders from charging high interest rates, borrowing money was generally not socially acceptable, and lending money to others was not profitable.


True

False

GPT-5 mini · Answer

False.

Although consumer credit expanded dramatically after World War I, credit was not absent before 1917. Various forms—merchant/store credit, pawnbrokers, mortgages, business loans and early installment plans (e.g., for sewing machines and furniture)—were already in use. Usury laws, social attitudes, and low regulated interest rates limited some kinds of lending, but lenders found ways around limits and many borrowers used informal and institutional credit.

The use of credit was uncommon prior to 1917 because laws prevented lenders from charging high interest rates, borrowing money was generally not socially acceptable, and lending money to others was not profitable.

True

False

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The use of credit was uncommon prior to 1917 because laws prevented lenders from charging high interest rates, borrowing money was generally not socially acceptable, and lending money to others was not profitable. True False

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The use of credit was uncommon prior to 1917 because laws prevented lenders from charging high interest rates, borrowing money was generally not socially acceptable, and lending money to others was not profitable.

True

False