Which of the Following Best Expresses the Policy Behind the Truth-In-Lending

question 6

Multiple Choice

Which of the following best expresses the policy behind the Truth-in-Lending Act?

• A) To help lenders by permitting them to investigate a person's credit history without having to worry about state libel laws.
• B) To help small business by requiring that lenders not use as collateral for secured loans a business's most important assets.
• C) To help borrowers by requiring lenders to charge a "reasonable" rate of interest as determined by the Federal Reserve Board.
• D) To help debtors for loans for personal, family, or household purpose to be armed with the necessary information on a loan to better bargain for credit and to choose the creditor with the best terms.

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Definitions:

Justification

The action of showing something to be right or reasonable, often by providing supporting evidence or reasoning.

Premise

An initial assertion that paves the way for a conclusion or inference to be made.

Justification

Providing sufficient reasons, evidence, or arguments to support a claim, belief, or action as valid or acceptable.

Premise

An assertion or proposition which forms the basis for a work's conclusion; in logic, it is the antecedent of an argument.