LSAT 137 | Section 1 | Reading Comprehension: Q25

RC Question 25 Explanation

DISCUSSION: The need for capital shows why monarchs wanted loans. It means that omnipotence was a very real problem for sovereigns, because they paid higher interest rates on their loans.

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1. Actually, this proves that it would be in the sovereign’s interest to limit their ability to cancel debts. Then they could get lower interest rates.
2. Creditors didn’t have a low opinion of sovereigns because they wanted money. Rather, creditors distrusted sovereigns because they could refuse to pay debts.
3. The fact that monarchs needed capital is actually a weakness in their real world power. It doesn’t help show their unlimited legal power.
4. CORRECT. Exactly. If sovereigns didn’t need loans, then high interest rates wouldn’t have been a problem for them. But these lines show that sovereigns needed loans quite badly, and their omnipotence meant they could only get loans at high interest rates.
5. We’re never given actual examples of sovereigns breaking their commitments to pay debts.