Which of the Following Statements About the Truth-In-Lending Act Is

question 343

Multiple Choice

Which of the following statements about the Truth-in-Lending Act is (are) true?

• A) it limits the interest rates that may be charged
• B) it prohibits the use of appraisal fees
• C) it does not apply to many loans over $25,000
• D) it requires all consumers be offered identical credit terms
• E) all of the other choices are true

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Definitions:

Total NPV

The sum of the net present values of a series of cash flows, which can indicate the overall net benefit of a series of potential investments or projects.

Maximize

To increase a particular outcome or variable to its highest possible value within a given set of constraints.

NPV

Net Present Value (NPV) is a financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time.

Cost of Capital

The essential return rate an enterprise must attain on projects to uphold its market value and pull in investment.