How does Truth-in-lending benefit consumers when shopping for a loan?

A.) Truth-in-lending allows consumers to be frank with the lenders and talk about very personal things.

B.)Truth-in-lending requires all lending institutions to eventually convert all of their loans to fixed interest rates

C.)Truth-in-lending requires all lending institutions to eventually convert all of their loans to fixed interest rates

D.)Truth-in-lending allows consumers to know every cost that is associated with the loans they research and apply for, and helps them reach the optimal decision.

DTruth-in-lending allows consumers to know every cost that is associated with the loans they research and apply for, and helps them reach the optimal decision.

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ColinJacobus ColinJacobus · Answer 2 · 2019-01-16T02:23:04-05:00

Answer: The answer is (D).

Step-by-step explanation: The Truth in Lending Act is a part of Federal Consumer Credit Protection Act. This act is well-known by another name Regulation Z.

Here, credit is offered to the customers on a regular basis for personal purposes and to be returned in no less than a time of four months.

This act believes in disclosing key terms and costs to customers for transaction of credits.

Thus, the correct option is

(D) Truth-in-lending allows consumers to know every cost that is associated with the loans they research and apply for, and helps them reach the optimal decision.