When quoting rates on loans,the "Truth in Lending Law" requires the bank to state the rate as an APR,effectively understating the true cost of the loan when interest is computed more often than once a year.

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The Truth in Lending Law requires banks to state the interest rate as an APR (Annual Percentage Rate), which takes into account the cost of the loan, including fees and interest, over the course of a year. This ensures that borrowers have an accurate understanding of the true cost of the loan, even if interest is computed more often than once a year.

When Quoting Rates on Loans,the "Truth in Lending Law" Requires