Question 78

Only $500 per month requires full disclosure of credit terms.

The phrase "only $500 per month" triggers the requirement for full disclosure of credit terms according to Regulation Z. This phrase implies specific payment terms that necessitate a clear and comprehensive explanation of the associated costs and conditions.

A) no payment until June

This phrase suggests a deferral of payment but does not specify a regular payment amount. While it may imply certain credit terms, it does not directly indicate a specific financial commitment that requires full disclosure under Regulation Z.

B) low down payment

The phrase "low down payment" indicates an initial cost but lacks specificity regarding the total cost of credit or payment structure. Thus, it does not meet the criteria for requiring full disclosure of credit terms as outlined in Regulation Z.

C) only $500 per month

This phrase explicitly states a monthly payment amount, which requires lenders to disclose the full credit terms in the advertisement. Regulation Z mandates such disclosures to ensure consumers understand the financial obligations associated with credit offers.

D) no extra charges

While this phrase indicates a lack of additional fees, it does not imply a specific payment structure or total cost of the credit. Therefore, it does not trigger the requirement for full disclosure of credit terms under Regulation Z.

Conclusion

The phrase "only $500 per month" is the only option that directly specifies a payment amount, necessitating full disclosure of credit terms in advertisements according to Regulation Z. Other options either lack specificity in terms of payment or do not imply financial obligations that would require such disclosures, thus failing to meet the criteria set forth in the regulation.