Which of the Following Best Expresses the Policy Behind the Truth-In-Lending

question 60

Multiple Choice

Which of the following best expresses the policy behind the Truth-in-Lending Act?

• A)To help borrowers by requiring lenders to charge a "reasonable" rate of interest as determined by the Federal Reserve Board.
• B)To help small business by requiring that lenders not use as collateral for secured loans a business's most important assets.
• C)To help debtors for loans for personal, family, household, or agricultural purpose to be armed with the necessary information on a loan to better bargain for credit and to choose the creditor with the best terms.
• D)To help lenders by permitting them to investigate a person's credit history without having to worry about state libel laws.

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Definitions:

Best Practices

Established methods or techniques that are considered superior to alternatives because they produce results that are superior to those achieved by other means.

Industry

The sector of economy characterized by the production and manufacturing of goods or provision of services.

Cost-Benefit Analysis

An analytical process to compare the costs and benefits of decisions, projects, or policies.

Prevention

Activities or measures taken to avoid or minimize unwanted outcomes or accidents before they happen.