The purpose of Regulation Z is to
A) make consumers aware of the costs of alternative forms of credit.
B) prohibit garnishment.
C) encourage depository institutions to help meet the credit needs of their communities for housing and other purposes.
D) regulate the overseas activities of member banks of the Federal Reserve System.

Question

Quizplus · Accepted Answer

Regulation Z, also known as the Truth in Lending Act, requires lenders to disclose the full cost of borrowing to consumers, including interest rates, fees, and other charges. The purpose of this regulation is to ensure that consumers are fully informed about the costs of credit so that they can make informed decisions about borrowing.

The Purpose of Regulation Z Is to