PSI Oklahoma Real Estate Practice Test

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Prepare for the PSI Oklahoma Real Estate Test. Use flashcards and multiple choice questions, each question with hints and explanations. Get ready for your exam!

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Which agency is responsible for promulgating Regulation Z?

Federal Trade Commission
Federal Bureau of Investigation
Federal Reserve System
Consumer Financial Protection Bureau

The correct answer is: Federal Reserve System

The agency responsible for promulgating Regulation Z is the Federal Reserve System. Regulation Z is part of the Truth in Lending Act (TILA) and it governs the disclosure of credit terms to consumers. This regulation was established to ensure that consumers have the information necessary to make informed decisions regarding credit, ultimately promoting transparency in lending practices. The Federal Reserve System's role in this context lies in its authority to implement consumer protection regulations in the financial services sector. Regulation Z requires lenders to provide clear and concise information about the cost of credit, including interest rates and terms, so that borrowers can compare offers from different creditors effectively. While other agencies, such as the Consumer Financial Protection Bureau, play crucial roles in enforcing consumer protection laws, it was the Federal Reserve that initially promulgated Regulation Z. This historical context highlights the importance of the Federal Reserve's functions in safeguarding consumers' rights in the credit marketplace.