4. In what ways can a lender collect a high rate of interest without appearing to do so?
5. What would be the effect upon the rate of interest in a new state if it passed a law preventing the collection of loans by outside lenders?
6. Why has interest been about 10% in the West, 7% in the Central States, 5% in New York, 4% in Germany?
7. What is the money market? Who are the buyers and sellers, and what do they buy and sell?
8. In a panic, interest rises on short loans and prices fall, while it is almost impossible to borrow money; does this show that the amount of money determines the interest rate?
9. When gold is leaving England, the bank raises the rate of discount (interest); does this show that the quantity of money determines the rate of interest?
Chapter 17. The Theory of Time-value
1. Give examples of a high cost for the use of wealth without the borrowing of money.
2. Give some examples of the neglect of repairs through lack of resources, and show how it involved time-value.
3. What would be some of the first effects on production if interest on money loans fell to one half its present rate?