10
QuizMultiple Choice

How Credit Works

Question 10 • TX-Personal Financial Literacy and Economics

Credit regulations require lenders to

Answer
A
consider only borrowers’ salaries.
B
disclose credit terms to borrowers.
C
use borrowers’ personal information.
D
attract borrowers as they see fit.

Explanation

Credit regulations require lenders to give borrowers clear information about the terms of credit, such as interest rates and fees. This lets borrowers understand the cost and conditions before they agree to a loan. Lenders may consider more than salary when assessing an application, but they are not required to use personal information or attract borrowers in a particular way.

AI-written and checked against the verified answer.