Introductory Business Law CLEP Prep Practice Exam

Which of the following are regulations of the Federal Trade Commissions?

1. Truth-in-Lending

2. Consumer Product Safety Commission

3. Right-to-Know Law

4. Federal Reserve System

The correct answer is: Truth-in-Lending

The other options are incorrect because they are not regulations of the Federal Trade Commission (FTC). The Federal Trade Commission is a government organization in charge of protecting consumers from unfair or deceptive business practices. Option B refers to another government organization responsible for protecting consumers from dangerous or defective products. Option C refers to a law that requires companies to disclose information to the public about hazardous chemicals. Option D is the central bank of the United States and regulates monetary and financial policy, which is outside the scope of the FTC's duties. The only regulation of the FTC listed as an option is Truth-in-Lending, which requires lenders to disclose the terms and conditions of credit offers to consumers. Therefore, A is the correct answer as it directly relates to the FTC's responsibilities.