The Equal Credit Opportunity Act Is Limited to Regulating Applications

question 59

True/False

The Equal Credit Opportunity Act is limited to regulating applications for credit and does not apply to the charging of higher interest rates based on the race of the consumer.

---

Definitions:

Prejudice

Preconceived opinions or judgments about people or groups, often negative and not based on actual experience or facts.

Stereotype

A widely held but oversimplified belief or generalization about a particular group or type of person.

Mental Shortcut

Cognitive strategies or heuristics that simplify decision making by reducing complex problem-solving to simpler rules of thumb.

Rapid Mental Processing

The ability to quickly assimilate, analyze, and act upon information mentally.