Which of the following is an objective of Regulation Z?

The objective of Regulation Z is to enhance the transparency of credit terms. This regulation, implemented under the Truth in Lending Act (TILA), aims to ensure that consumers receive clear and comprehensible information about the costs and terms of credit. By requiring lenders to disclose important details, such as the annual percentage rate (APR), finance charges, and other loan terms, Regulation Z seeks to help consumers make informed borrowing decisions. This increase in transparency is essential for fostering a competitive lending environment where consumers can easily compare different credit offers.

The other options do not align with the primary goals of Regulation Z. For instance, limiting the availability of credit would not serve consumers, as the regulation is intended to protect their rights and clarify their obligations. Furthermore, while reducing interest rates might benefit consumers, that is not a direct objective of Regulation Z. Similarly, increasing the number of foreclosures is contrary to the intent of the regulation, which is designed to inform consumers and protect them from predatory lending practices that could lead to financial distress.