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Which of the Following Statements Is True of Annual Percentage

Question 74

Multiple Choice

Which of the following statements is true of annual percentage rate (APR) ?


A) The Truth-in-Savings Act was passed by Congress to ensure that the true cost of credit was disclosed to consumers.
B) The Truth-in-Lending Act was passed to provide consumers an accurate estimate of the return they would earn on an investment.
C) The Truth-in-Savings Act and Truth-in-Lending Act require by law that the APR be disclosed on all consumer loans and savings plans.
D) The annual percentage rate (APR) , and not the effective annual interest rate (EAR) , represents the true economic interest rate.

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