The Act Seeks to Make Creditors Disclose All Terms of a Credit

question 74

Multiple Choice

The Act seeks to make creditors disclose all terms of a credit arrangement before they enter into an agreement with a consumer-debtor.

• A) Dodd-Frank
• B) Sherman
• C) Truth-in-Lending
• D) Securities Exchange

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Definitions:

Convertible

A type of financial security, such as a bond or preferred stock, that can be converted into a specified amount of another type, typically common stock, at the holder's option.

Bond Yields

The amount of return an investor realizes on a bond, usually expressed as a percentage of the bond's value.

Present Value

The present worth of a future sum of money or series of cash flows, when discounted at a specific rate of interest.

Coupon Payment

The interest payment made to the bondholders by the issuer of the bond.