Which of the Following Must Be True in Order for a Loan

question 52

Multiple Choice

Which of the following must be true in order for a loan to come within the protection 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, or 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 regarding the loan having an interest rate of over 5%.

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Definitions:

Limited Partnership

A partnership with general and limited partners.

Limited Liability

A legal structure that protects a company's owners or investors from being personally liable for the company's debts or liabilities beyond their investment in the company.

Partners

Individuals who share ownership of a business entity and are mutually obligated to the entity's liabilities and operational decisions.

Rights Of Partners

Rights of partners pertain to the entitlements and privileges granted to members of a business partnership, such as sharing profits, management participation, and access to information.