ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Annual percentage ratio
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Dollar amount
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APR
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Fraction
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Detailed explanation-1: -The Truth in Lending Act (TILA) protects you against inaccurate and unfair credit billing and credit card practices. It requires lenders to provide you with loan cost information so that you can comparison shop for certain types of loans.
Detailed explanation-2: -The Truth in Lending Act (TILA) of 1968 is a Federal law designed to promote the informed use of consumer credit. It requires disclosures about the terms and cost of loans to standardize how borrowing costs are calculated and disclosed.
Detailed explanation-3: -The correct answer is D. Under Truth in Lending, the lender must disclose all finance charges which might include buyer’s points, loan fees, finder’s fees paid to the person bringing the borrower to the lender, service charges, mortgage insurance premiums and interest.
Detailed explanation-4: -The Truth in Lending Act applies to consumer loans (for family, personal, or household purposes), including the purchase of mobile homes and the land they’re on. It does not apply to commercial loans, such as a construction loan for a developer.