Ch 8

1. Which ancient city is the first known place to have used a loan contract?

Uruk

2. What did the first loan contracts use in order to account for the loan?

Clay or stone tokens

3. The original concept of loan interest involved:

Payment in the offspring of cattle or sheep

4. At one time in history laws were put in place that created a maximum rate of interest of 20%.
How did greedy moneylenders get around this restriction?

They began allowing shorter periods of time for repayment