Which of the Following Provisions Regarding the Fair Credit Billing

question 24

Multiple Choice

Which of the following provisions regarding the Fair Credit Billing Act is accurate?

• A) During the time the creditor is replying, the customer is required to pay back the questioned item.
• B) The act allows a customer 90 days to notify the creditor of the nature of the error and the amount.
• C) In case of an error, the creditor has 120 days to respond and 150 days to correct the customer's account.
• D) The act applies only to open-end credit and not to installment sales.
• E) The Congress enacted this act as an amendment to the Fair Credit Reporting Act.

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Definitions:

General Partner

An owner of a partnership who has unlimited liability and is active in managing the firm, as opposed to a limited partner with limited liability.

Secondary Market

The market where investors buy and sell securities they already own, as opposed to the primary market where securities are first issued.

Foreign Exchange Market

A global marketplace for trading national currencies against one another.

Debt Market

A financial market where participants can issue and trade debt securities, often used by corporations and governments to finance their operations.