Final answer:
The correct federal regulation that prohibits credit transaction discrimination is Regulation B, which implements the Equal Credit Opportunity Act (ECOA).
Step-by-step explanation:
The federal regulation that prohibits discrimination based on race, color, religion, sex, marital status, or national origin in a credit transaction is known as Regulation B. This regulation implements the Equal Credit Opportunity Act (ECOA), which ensures that all consumers are given an equal chance to receive credit. This means that banks and other financial institutions are forbidden from discriminating on these bases when deciding who qualifies for a loan, credit card, or other credit facilities.
Not to be confused with Title VII of the Civil Rights Act of 1964, which focuses on employment discrimination, Regulation B specifically addresses discrimination in granting credit by financial institutions. Thus, answer B is the correct choice for the student's question.