Under the Equal Credit Opportunity Act, a Creditor Is Permitted

question 6

Multiple Choice

Under the Equal Credit Opportunity Act, a creditor is permitted to:

• A) request any information they think necessary to make a decision about a credit applicant
• B) discriminate against an applicant based on marital status
• C) consider information about indirect credit history of an applicant
• D) ask questions about applicant's plans to have children in order to calculate impact on future income
• E) none of the other choices

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Definitions:

Auditing Standards

Rules and guidelines set by governing bodies that dictate the auditing process, ensuring consistency, and reliability in financial reporting.

Sarbanes-Oxley Act

A U.S. federal law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures, including those related to financial statements and corporate governance.

Authoritative Accounting Guidance

Officially recognized principles and standards that govern financial reporting and accounting practices.

ASC

Accounting Standards Codification, the source of authoritative generally accepted accounting principles (GAAP) recognized by the FASB to be applied by nongovernmental entities in the United States.