Final answer:
In the Truth-in-Lending Act, triggering terms like Annual Percentage Rate (APR) and Finance Charge require the disclosure of additional loan terms. These terms are essential to ensure consumers have transparent information when considering loans and credit.
Step-by-step explanation:
In the context of the Truth-in-Lending Act, a triggering term is any term that requires disclosure of other terms of the loan. Of the options provided, Annual Percentage Rate (APR) and Finance Charge are considered triggering terms. When a lender advertises these terms, they are required to also disclose certain other terms of the loan to ensure that the consumer is fully informed about the costs associated with borrowing.
For instance, when APR is stated in an advertisement for a home loan, auto loan, or credit card, the lender must also clearly state the terms of the repayment. Similarly, if a finance charge is advertised, it triggers the need for additional information to be provided. The triggering terms are meant to protect consumers by ensuring transparency in the terms of loans and credit transactions. Understanding these terms is crucial when making decisions about taking on loans & interest, especially for large purchases like homes or vehicles, where the financial commitment is significant over a long period.