The Equal Credit Opportunity Act

question 32

Multiple Choice

The Equal Credit Opportunity Act:

• A)is designed to protect consumers from unfair or inaccurate credit reporting.
• B)requires online ads for free credit reports to disclose whether the consumer must buy credit monitoring or other products or services to get the report.
• C)prohibits discrimination in credit transactions on grounds of sex,marital status,race,color,religion,national origin,and age.
• D)sets forth basic privacy protections that must be provided by financial institutions and requires them to respect the privacy of their customers' nonpublic personal information.

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Definitions:

Disposable Income

The amount of money individuals or households have to spend or save after income taxes have been deducted.

Discretionary Income

The amount of an individual's income left for spending, investing, or saving after taxes and personal necessities (like food, shelter) are taken care of.

Gross Income

The total revenue generated from a business's activities or an individual's earnings before any deductions are made for expenses, taxes, or other reductions.

Discretionary Income

Discretionary income is the amount of an individual's income left for spending, investing, or saving after taxes and personal necessities (like food, shelter) are taken care of.