Which Federal Law Limits a Cardholder's Liability for Unauthorized Use

question 70

Multiple Choice

Which federal law limits a cardholder's liability for unauthorized use of a card to $50?

• A) Truth in Lending Act
• B) Fair Credit Reporting Act
• C) Fair Credit Billing Act
• D) Equal Credit Opportunity Act
• E) Fair Debt Collection Practices Act

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Definitions:

Ability-To-Pay Principle

The idea that those who have greater income (or wealth) should pay a greater proportion of it as taxes than those who have less income (or wealth).

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they are accessible to all without diminishing availability to others, such as public parks or national defense.

Ability-To-Pay Philosophy

A principle that asserts taxes should be levied based on an individual's or entity's capacity to pay, implying those with higher income or wealth should pay more in taxes.

Progressive Income Tax

A tax system in which the tax rate increases as the taxable income increases, imposing higher rates on those with higher incomes.