Which of the Following Best States the Purpose of the Federal

question 21

Multiple Choice

Which of the following best states the purpose of the Federal Trade Commission (FTC) ?

• A)It was created to ensure that the American economy imports more than it exports.
• B)It was created to prevent "unfair methods of competition and unfair or deceptive acts or practices in and affecting commerce."
• C)It provides a mechanism to deal with the billing errors that accompany credit card and certain other "open-end" credit transactions.
• D)It was designed to shield debtors from unfair debt collection tactics by collection agencies and attorneys who routinely operate as debt collectors.

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Definitions:

Privity of Contract

A doctrine stating that only the parties involved in a contract have the rights and obligations under that contract.

Financial Statements

Financial statements are formal records of the financial activities and condition of a business, person, or other entity, providing an overview of a company's financial performance and position in the market.

Section 11

A provision of the Securities Act of 1933 that holds issuers liable for material misstatements or omissions in their public offering documents.

Securities Act of 1933

A U.S. law enacted to protect investors by requiring transparency in financial statements so investors can make informed decisions about investments.