Asked by Ingrid Depaz on Apr 30, 2024
Verified
Which of the following is defined by the Truth in Lending Act as a plan that contemplates repeated transactions and involves a finance charge that may be computed on the unpaid balance?
A) Revolving credit
B) Interest credit
C) Open-end credit
D) Closed-end credit
Truth in Lending Act
A federal law designed to protect consumers in their dealings with lenders and creditors by requiring clear disclosure of loan terms and costs.
Revolving Credit
A credit agreement that allows a borrower to withdraw, repay, and redraw loans repeatedly up to a certain credit limit.
- Recognize the importance of specific regulations like the Truth in Lending Act and the Equal Credit Opportunity Act in protecting consumer rights.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
C
Explanation :
The Truth in Lending Act defines an open-end credit plan as one that contemplates repeated transactions and involves a finance charge that may be computed on the unpaid balance.
Learning Objectives
- Recognize the importance of specific regulations like the Truth in Lending Act and the Equal Credit Opportunity Act in protecting consumer rights.
Related questions
The Purpose of the Truth in Lending Act Is to ...
Creditors May Require, Under the Equal Credit Opportunity Act, That ...
In Order for a Loan to Come Within the Scope ...
According to the Truth in Lending Act,credit Card Applications Must ...
The Equal Credit Opportunity Act Would Not Prohibit Which of ...