In Order for a Loan to Come Within the Scope

question 4

Multiple Choice

In order for a loan to come within the scope of the Truth in Lending Act,________.

• A)the credit or loan must be subject to a finance charge
• B)the credit or loan must have repayments of more than four installments
• C)the credit or loan must have an interest rate of over 5%
• D)the credit or loan must be subject to a finance charge,the credit or loan must have repayments of more than four installments,and the credit or loan must have an interest rate of over 5%
• E)the credit or loan must be subject to a finance charge or have repayments of more than four installments,but there is no requirement that the loan have an interest rate of over 5%

---

Definitions:

Reasonably Possible

A term used in accounting and legal contexts to describe outcomes that are more than remote but less than likely.

Liability Likelihood

The probability or likelihood that a company will be responsible for an obligation or debt in the future.

Reasonably Possible

A term used in accounting and finance to denote outcomes that are more than a remote possibility but less likely than probable.

Estimable

Capable of being estimated or approximately calculated.