1
AssignmentMultiple Choice

Contracts

Question 1 • FL-2102373-Personal Finance and Money Management Honors

What is the purpose of the privacy clause in Casey's mortgage contract?

Answer
A
to permit the lender to publicize Casey’s purchase details
B
to ensure Casey’s financial information is sold to the highest bidder
C
to guarantee Casey receives savings and marketing from third parties
D
to prevent unapproved sharing of Casey’s financial details

Explanation

A privacy clause limits how the lender may use or share a borrower's personal and financial information. Its purpose is to prevent Casey’s financial details from being disclosed without authorization, not to publicize them or sell them to others. Therefore, the correct choice is D, to prevent unapproved sharing of Casey’s financial details.

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