Fair Credit Reporting Refers to the Requirement That Creditors

question 275

Multiple Choice

Fair credit reporting refers to the requirement that creditors:

• A) must disclose all relevant terms in credit transactions
• B) must not use sex or race to determine a person's creditworthiness
• C) must not use abusive debt collection techniques
• D) credit reporting agencies must provide accurate information in consumer reports
• E) none of the other specific choices are correct

---

Definitions:

Accounts Payable

The amount of money a company owes to its suppliers or creditors for goods and services purchased on credit.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of the business.

Cost of Trade Credit

The effective interest rate associated with taking discounts offered by suppliers for early payment or the cost of forgoing those discounts.

Net 30

A payment term indicating that full payment is due within 30 days of the invoice date.