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:

Bank Credit Cards

Financial instruments issued by banks that allow users to borrow funds for purchases, subject to repayment terms and interest.

Cash Sales

Transactions where goods or services are purchased and paid for with cash at the time of the sale.

Perpetual Inventory

An inventory management system where inventory quantities and costs are updated continuously with each sale or purchase transaction.

Accounts Payable

Liabilities of a business that represent its obligations to pay off a short-term debt to its creditors or suppliers.