Which of the Following Is the Main Objective of FTL

question 8

Multiple Choice

Which of the following is the main objective of FTL legislation?

• A) More effective advance disclosure of settlement costs
• B) More informative disclosure of the cost of credit
• C) Elimination of kickbacks and unearned fees
• D) A reduction in the amount of escrow placed in accounts for homeowners

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Definitions:

Discount Period

The discount period is the timeframe during which a payment can be made at a reduced price or interest rate before returning to its original rate.

Perpetual Inventory System

An approach to inventory management where updates are made continuously as inventory items are bought and sold.

Cost of Merchandise Sold

The total expense incurred to acquire goods that have been sold during a certain period.

Periodic Inventory System

An accounting method where inventory is physically counted at specific intervals, typically at the end of an accounting period, to determine the cost of goods sold and ending inventory.