Which of the Following Is Not True About the Credit

question 100

Multiple Choice

Which of the following is not true about the Credit CARD Act of 2009?

• A) States that teaser rates must be in effect for at least 6 months
• B) Makes new disclosure statements clear and more timely
• C) Requires card issuers to post their standard card agreements on the Internet
• D) Allows card issuers to apply new (higher) interest rates to the existing card balances
• E) Requires issuers to mail monthly statements at least 21 days before payment is due

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Definitions:

Corporate Concentration

The degree to which a small number of firms control a large market share of the total output or sales within an industry.

Herfindahl-Hirschman Index

A measure of market concentration to evaluate the competitive landscape, calculated by summing the squares of the market shares of all firms in the industry.

Herfindahl-Hirschman Index

A measure of market concentration and competition, calculated by squaring the market share of each firm competing in a market and summing the resulting numbers.

Concentrated Industry

An economic sector characterized by a small number of firms holding a large market share, leading to reduced competition.