Finance
In New Mexico, the 'Truth in Lending Act' (TILA) requires lenders to disclose the APR primarily to:
ARequire lenders to offer the lowest possible rate
BEnable borrowers to comparison-shop among lenders by providing a standardized measure of credit cost✓ Correct
CSet maximum interest rates
DRequire government approval of loan terms
Explanation
TILA requires disclosure of the APR so borrowers can compare the true cost of credit across different loan products and lenders, enabling informed decision-making. The APR includes not just the interest rate but also fees and other costs.
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