Which of the following best expresses the policy behind the Truth-in-Lending Act?
A) To help borrowers by requiring lenders to charge a "reasonable" rate of interest as determined by the Federal Reserve Board.
B) To help small business by prohibiting lenders from using,as collateral for secured loans,a business's most important assets.
C) To help debtors for loans for personal,family,household or agricultural purposes to be armed with the necessary information on a loan to better bargain for credit and to choose the creditor with the best terms.
D) To help lenders by permitting them to investigate a person's credit history without having to worry about state libel laws.

Question

Quizplus · Accepted Answer

The Truth-in-Lending Act requires lenders to provide borrowers with all of the necessary information about a loan so that they can make an informed decision about whether or not to take out a loan, and from whom to take the loan. This helps debtors for loans for personal, family, household, or agricultural purposes to be armed with the necessary information on a loan to better bargain for credit and to choose the creditor with the best terms. Therefore, option C best expresses the policy behind the Truth-in-Lending Act. The other options are not accurate as they do not reflect the purpose of the act.

Which of the Following Best Expresses the Policy Behind the Truth-In-Lending