(Last Word) Late Payment Fees and Overdraft Protection

question 39

Multiple Choice

(Last Word) Late payment fees and overdraft protection

• A) are illegal under the Truth in Lending Act.
• B) do not have to be reported under the provisions of the Truth in Savings Act.
• C) effectively charge high rates of interest on loans to bank customers.
• D) are unrelated to interest rates because they are fees.

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Definitions:

Extraordinary Item

Events or transactions that are both unusual in nature and infrequent in occurrence, impacting a company's financial position.

Selling Activities

Actions undertaken by a company to promote and sell its products or services, including advertising, sales promotions, and personal sales.

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting liquidity.

GAAP Estimate

An accounting estimate made following Generally Accepted Accounting Principles guidelines.