The Loan And The Consumer

Question 1

APR

Answer 1

The annual percentage rate as calculated under the federal Truth-in-Lending Act by combining the interest rate with other costs of the loan

Question 2

Credit report

Answer 2

A report reflecting the creditworthiness of a borrower by showing past credit history

Question 3

Fair credit reporting act

Answer 3

Federal law giving an individual the right to inspect his or her file with the credit bureau and correct any errors

Question 4

Finance charge

Answer 4

The total amount the credit will cost over the life of the loan

Question 5

Liquid asset

Answer 5

Asset that is in cash or is readily convertible to cash

Question 6

Redlining

Answer 6

A lender’s refusal to make loans in certain neighborhoods

Question 7

Regulation Z

Answer 7

Federal regulations that implement the enforcement of the truth-in-lending act

Question 8

Truth-in-lending act

Answer 8

A federal law that requires certain disclosures when extending or advertising credit