What does TILA stand for?

The correct answer is the Truth in Lending Act, commonly known by its acronym TILA. This federal law was enacted to promote informed use of consumer credit by requiring disclosures about its terms and costs. TILA aims to protect consumers in their borrowing to avoid misunderstandings about the terms of loans and credit, ensuring that borrowers have the necessary information to make informed decisions before entering into credit agreements. The act mandates clear and conspicuous disclosure of key terms, such as the annual percentage rate (APR), total costs, and other finance charges associated with borrowing.

The other options do not accurately represent the law's name or its intent. For example, "Truth in Loan Agreement" and "Timeframe in Loan Approval" do not reflect any existing legislation, and they misunderstand the focus of consumer credit disclosure. "Transaction in Lending Act," while it sounds somewhat plausible, does not correspond to any recognized legislation governing consumer credit and lending practices.