Ellen,age 25,was Recently Divorced and Has Applied to Mayberry Bank

question 7

Multiple Choice

Ellen,age 25,was recently divorced and has applied to Mayberry Bank for a loan.The bank,as regulated by the Equal Credit Opportunity Act:

• A) can ask her if she is married.
• B) can ask her if she plans to have children soon.
• C) can discount her loan rating because she is 25 and likely to have children within the next five years.
• D) must notify Ellen within 30 days after receiving her credit application of the action taken,and if she is denied credit,the bank must give her specific reasons for the denial.

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Definitions:

Cash Proceeds

The total amount of cash received from the sale of goods, asset disposals, or financing transactions.

Controlling Investor

An investor or entity that holds a significant amount of voting stock in a company, allowing them to influence or control management decisions.

Long-Term Investment

Investments that a company or individual holds for more than one year, typically including stocks, bonds, or real estate.

Parent

A company that holds a controlling interest in another company, making the other company its subsidiary.