The Consumer Financial Protection Bureau

question 135

Multiple Choice

The Consumer Financial Protection Bureau:

• A) prohibits credit card issuers from raising interest rates on existing balances unless the borrower is more than 60 days late in making the required payments.
• B) prohibits credit card companies from issuing cards to anyone under the age of 21.
• C) requires credit card issuers to give a 45-day notice before making significant changes to credit agreements.
• D) eliminates confusing and potentially deceptive banking practices related to mortgages, credit cards, and other loan agreements.

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Definitions:

Semi-Annually

Occurring twice a year; a term often used in the context of paying interest or dividends.

Yield To Maturity

The total return anticipated on a bond if it is held until its maturity date, considering all interest payments and the principal repayment.

Par

The face value of a bond or other security, at which it can be redeemed at maturity or the amount of money equal in value to a particular share or bond.

Coupon

The yearly payment of interest to those holding bonds, represented as a percentage of the bond's nominal value.