Finance
The Truth in Lending Act (TILA) requires lenders to disclose the Annual Percentage Rate (APR) primarily to:
AAllow lenders to advertise low teaser rates
BEnable borrowers to compare the true cost of different loan offers✓ Correct
CSet a maximum interest rate for residential mortgages
DRequire three days for the borrower to accept a loan offer
Explanation
TILA requires disclosure of the APR so that consumers can make apples-to-apples comparisons of different loan products, understanding the true cost of borrowing including fees.
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