One of the Primary Purposes of the Federal Consumer Credit

question 3

Multiple Choice

One of the primary purposes of the federal Consumer Credit Protection Act is to

• A) require creditors to specify how finance charges are computed.
• B) grant certain rights to credit applicants regarding credit reports.
• C) inform consumers about all forms of credit available to them.
• D) specify what information a customer's employer can release about him/her.

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Definitions:

Unlevered Cost of Capital

The cost of capital for a company that has no debt, reflecting the risk of investing in the company's equity alone.

Firm No Debt

A business that operates without borrowing money or issuing debt instruments.

Business Risk

The exposure a company or investor faces due to uncertainties in profits or dangers in its industry or economy.

Equity Risk

The risk of loss due to a drop in the value of stocks or equity securities.