____________________________ Requires Disclosure of the Finance Charge and the Annual

question 151

Multiple Choice

____________________________ requires disclosure of the finance charge and the annual percentage rate of credit along with certain other costs and terms to permit consumers to compare the prices of credit from differing sources.

• A) Truth in Lending Act
• B) Equal Credit Opportunity Act
• C) Federal Trade Commission Improvement Act
• D) Fair Credit Billing Act

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Definitions:

Reporting Unit

A component of an entity for which discrete financial information is available and is reviewed regularly by the operating segment's management.

Fair Value

The sum fetched from the sale of an asset or spent on the transition of a liability in a smooth transaction involving market participants at the time of assessment.

Foreign Currency Nonmonetary Assets

Assets that are not in cash and are not expected to be converted into cash in the near future, valued in a currency other than the entity's functional currency.

Historic Rate

The exchange rate at which a transaction was executed in the past, used for recording foreign currency transactions in financial statements.