New Jersey Real Estate Practice Exam Free Practice Question
The purpose of Regulation Z is to
Correct Answer: D
Rationale: Regulation Z, part of the Truth in Lending Act, aims to ensure that consumers are informed about the costs and terms of credit, promoting transparency in lending practices. This helps borrowers make informed decisions.
Option A, "control the use of credit," is incorrect as Regulation Z does not limit how credit is used. Option B, "regulate interest charges," is misleading; while it addresses disclosure, it does not directly regulate interest rates. Option C, "set maximum interest charges," is also wrong; Regulation Z does not impose caps on interest rates but focuses on clear communication of costs associated with borrowing.
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