Benedict Applies for a Credit Card with a Credit Limit

question 109

Multiple Choice

Benedict applies for a credit card with a credit limit of $30,000. However, the issuing bank rejects his application because of his low credit score. While rejecting his application, the bank provides him with a free copy of his credit score. In this scenario, the bank is following the mandate of the _____.

• A) Federal Credit Union Act
• B) Dodd-Frank Act
• C) Glass-Steagall Act
• D) Credit Card Accountability, Responsibility and Disclosure Act

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Definitions:

Disclosure Requirements

These are mandates that entities must follow when revealing financial and other significant information in their reports, aimed at ensuring transparency and facilitating informed decision-making by users of financial statements.

Inventories Valuation

The process of determining the monetary value of a company's stock, under specific cost flow assumptions.

Estimated Selling Price

The price at which it is expected that goods or assets can be sold, often used in accounting for valuations.

Exit Price

The price that would be received to sell an asset or paid to transfer a liability.