Question

How does Truth-in-lending benefit consumers when shopping for a loan?
A.) Truth-in-lending allows consumers to be frank with the lenders and talk about very personal things.
B.)Truth-in-lending requires all lending institutions to eventually convert all of their loans to fixed interest rates
C.)Truth-in-lending requires all lending institutions to eventually convert all of their loans to fixed interest rates
D.)Truth-in-lending allows consumers to know every cost that is associated with the loans they research and apply for, and helps them reach the optimal decision.

Answer 1

D. Truth-in-lending allows consumers to know every cost that is associated with the loans they research and apply for, and helps them reach the optimal decision.

Answer 2

Answer: The answer is (D).

Step-by-step explanation: The Truth in Lending Act is a part of Federal Consumer Credit Protection Act. This act is well-known by another name Regulation Z.

Here, credit is offered to the customers on a regular basis for personal purposes and to be returned in no less than a time of four months.

This act believes in disclosing key terms and costs to customers for transaction of credits.

Thus, the correct option is

(D) Truth-in-lending allows consumers to know every cost that is associated with the loans they research and apply for, and helps them reach the optimal decision.