Which of the Following Would Keep the Truth in Lending

question 43

Multiple Choice

Which of the following would keep the Truth in Lending Act (TILA) from applying to a transaction?

• A)The intent of the debtor to make commercial use of funds borrowed in the transaction.
• B)The transaction being an open-end credit plan.
• C)The debtor being a natural person rather than a business entity.
• D)The creditor being a credit card issuer rather than a maker of a conventional loan.

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Definitions:

EOQ Model

Economic Order Quantity Model; an inventory management formula that determines the optimal order quantity to minimize total inventory costs.

Collection Policy

The guidelines and procedures that a company follows to collect accounts receivables from its customers, including the timeline and actions for overdue payments.

Average Collection Period

The average number of days it takes for a company to receive payments owed by its customers, indicating the efficiency of a company's credit and collection policies.

Net Float

The difference between checks written against and deposited in an account, not yet cleared by the financial institution.