Which of the Following Acts Requires Disclosure of Finance Charges

question 44

Multiple Choice

Which of the following acts requires disclosure of finance charges in terms of an annual percentage rate and requires that interest rates be calculated in a uniform manner in consumer credit transactions?

• A) Equal Credit Opportunity Act
• B) Fair Credit Billing Act
• C) Truth-in-Lending Act
• D) FTC Act

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Definitions:

Consumption

The application of goods and services by domestic units.

Interest Rate

The percentage of a sum of money charged for its use, determining the cost of borrowing or the return on investment.

Income

Earnings received by an individual or entity, typically through wages, investments, or business activities, over a certain period.

Utility Function

A form of mathematical model that orders a person's preferences across a range of products and services.