The Truth in Savings Act

question 40

Multiple Choice

The Truth in Savings Act

• A) Provides formulas so people can calculate the APY on investments
• B) Requires that banks must disclose the fees,the APR,and the APY on interest-bearing accounts
• C) Requires that banks must disclose the fees,the APR,and the APY on loans
• D) Provides formulas so people can calculate the APY on loans

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Definitions:

Individual Households

Single units comprising one or more persons within an economy that make decisions about consumption, saving, and labor supply.

Inflation

The speed at which the overall price level for products and services increases, diminishing the buying power.

Unemployment

The situation where individuals who are capable of working and willing to work do not find employment.

Opportunity Costs

The cost of the next best alternative foregone as a result of making a decision.