A Sale Between Two Consumers Is Not Subject to the Truth-In-Lending

question 6

True/False

A sale between two consumers is not subject to the Truth-in-Lending Act.

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Definitions:

Statutory Rate

The legally enforced tax rate set by government legislation.

Differential Tax Rates

Different rates of taxation applied to different levels of income, types of taxpayers, or types of activities, to achieve various economic or social objectives.

Effective Rate

The interest rate on a loan or financial product, re-calculated to include all fees and compounded interest, showing the true cost of the loan over its term.

Deferred Taxes

Taxes that are due on income or transactions that have been recorded in the financial statements but have not yet been settled in cash.