When a Consumer Is Rejected for Credit, the Equal Credit

question 266

True/False

When a consumer is rejected for credit, the Equal Credit Opportunity Act requires the creditor to give the consumer a list of at least three other creditors.

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, ultimately providing information on its profit or loss.

Debt-To-Equity Ratio

A financial ratio indicating the relative proportion of a company's assets financed by debt compared to shareholder equity.

Common Stock

An ownership share in a corporation, representing a claim on part of the company's profits and assets.

Market Price

The present cost at which a product or service is available for purchase or sale in a specific marketplace.