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:

Consequential Damage

Indirect losses that occur as a result of a breach of contract or other wrongful act, beyond the immediate damage or loss incurred.

Cash Payment

A transaction where the payment for goods or services is made using physical currency or through an immediate electronic transfer of funds.

Grand Opening Sale

A promotional event conducted to attract customers to a new business or service, offering products at reduced prices for a limited time to generate interest and traffic.

Letter of Credit

A financial document issued by a bank guaranteeing a buyer's payment to a seller within a specified timeframe.