The Truth-In-Lending Act Covers Only Certain Classes of Consumer Credit

question 22

Multiple Choice

The Truth-in-Lending Act covers only certain classes of consumer credit transactions. For example, the:

• A) debtor must be a business organization
• B) creditor may not be a business organization
• C) creditor must be in the business of regularly granting credit
• D) debtor must be a business organization and the creditor must be in the business of regularly granting credit
• E) creditor may not be a business organization and the creditor must be in the business of regularly granting credit

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Definitions:

Commodity

A basic good used in commerce that is interchangeable with other goods of the same type.

Legal Tender

U.S. currency that constitutes a valid and legal offer of payment of debt.

Money

Any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts in a particular country or socio-economic context.

Issued

Issued generally refers to the official distribution or release of items such as documents, currency, or securities by an authoritative entity.