Finance and Taxation Vocabulary

The purpose of the Truth in Lending Act is to:

• Protect consumers by requiring clear disclosure of key terms of the lending arrangement and all costs.

• Regulate the interest rates that lenders can charge.

• Provide financial education to consumers.

• Ensure that all loans are approved by the government.

The purpose of Liquidity is to:

• Ensure that assets can be quickly converted to cash without significant loss in value.

• Increase the overall profitability of a company.

• Reduce the amount of debt a company holds.

• Enhance the long-term growth potential of a company.

The purpose of a Dividend is to:

• Provide a return on investment to shareholders

• Increase the company's debt

• Reduce the company's tax liability

• Expand the company's market share

The purpose of the Consumer Financial Protection Bureau is to:

• Protect consumers in the financial sector

• Regulate international trade

• Oversee environmental policies

• Manage national defense

The purpose of the National Credit Union Administration (NCUA) is to:

• regulate and supervise federal credit unions

• provide insurance to credit union members

• promote financial stability

• all of the above

The purpose of the Federal Deposit Insurance Corporation (FDIC) is to:

• Insure deposits in banks and thrift institutions for at least $250,000

• Regulate the stock market

• Provide loans to small businesses

• Control the monetary policy of the United States

The purpose of the Federal Reserve is to:

• regulate the stock market

• control the money supply and interest rates

• provide loans to individuals

• manage international trade agreements

The purpose of the Security Exchange Commission (SEC) is to:

• Regulate the stock market and protect investors

• Provide loans to small businesses

• Manage the country's monetary policy

• Oversee the Federal Reserve

The Fair Trading Act is:

• a law that promotes fair competition and protects consumers in trade

• a financial regulation act

• an environmental protection law

• a labor rights act

The Environmental Protection Act is a law designed to:

• regulate air and water pollution

• promote economic growth

• support agricultural development

• encourage technological innovation