Consumer Protection Agencies and Legislation

What is the primary role of the SEC?

• To protect consumers from deceptive business practices

• To ensure fairness in the securities markets

• To enforce Federal consumer financial law

• To regulate international trade

How does the FTC aim to protect consumers?

• By promoting investment opportunities

• By enforcing Federal consumer financial law

• By preventing anticompetitive and deceptive practices

• By regulating securities markets

What is the focus of the CFPB?

• To promote fairness in securities markets

• To ensure consumer financial products are fair and transparent

• To prevent deceptive business practices

• To regulate international trade

What is the primary mission of the Federal Deposit Insurance Corporation (FDIC)?

• To insure deposits and manage receiverships

• To regulate stock markets

• To provide loans to small businesses

• To oversee international trade

Which agency is responsible for insuring deposits at federally insured credit unions?

• Federal Reserve

• National Credit Union Administration (NCUA)

• Securities and Exchange Commission

• Internal Revenue Service

How does the FDIC contribute to the stability of the financial system?

• By issuing currency

• By insuring deposits and examining financial institutions

• By setting interest rates

• By providing tax incentives

What role does the NCUA play in relation to credit unions?

• It provides investment advice

• It charters and regulates federal credit unions

• It offers insurance for home loans

• It manages retirement funds

What is the primary purpose of the Truth in Lending Act (1968)?

• To allow creditors to change loan terms after finalization

• To force creditors to disclose all loan terms before finalization

• To eliminate the use of annual percentage rates

• To increase hidden charges in loans

How did the Truth in Lending Act (1968) impact the use of annual percentage rates (APR)?

• It discouraged the use of APR

• It made APR optional for creditors

• It encouraged the standard use of APR for loan comparison

• It eliminated the need for APR in loans

What is the primary purpose of the Fair Debt Collection Practices Act (FDCPA) of 1977?

• To set guidelines for debt collectors' behavior

• To increase the interest rates on loans

• To provide tax benefits to debt collectors

• To eliminate all forms of debt