The Fair and Accurate Credit Transactions Act

question 20

Multiple Choice

The Fair and Accurate Credit Transactions Act

• A) gives consumers the right to request a free copy of their credit report every year.
• B) allows credit bureaus to sell personal financial information they have gathered.
• C) makes it possible for a consumer to declare bankruptcy without harming his or her credit rating.
• D) ensures that people with criminal convictions are still able to obtain credit.
• E) All of the above

---

Definitions:

Real Rate

The interest rate adjusted for inflation, reflecting the real cost of funds to the borrower and the real yield to the lender.

Inflationary Premium

The part of the total interest rate that represents compensation to the lender for the expected loss of purchasing power due to inflation.

Investments

Investments refer to the allocation of money into assets with the expectation of generating income or profit in the future.

Current Consumption

Current consumption denotes the total goods and services consumed by individuals or the economy at a given time, excluding savings.