Which of the following is a goal of the Truth in Lending Act?

The Truth in Lending Act (TILA) was enacted to promote the informed use of consumer credit by requiring disclosures about its terms and cost. One of the primary goals of TILA is to ensure that borrowers fully understand the costs associated with their loans, which includes interest rates, terms, and any other fees that might apply. By mandating clear disclosure of this information, TILA aims to empower consumers to make better-informed financial decisions and compare different credit options. This transparency helps protect consumers from misleading lending practices and promotes fairness in the lending process.

The other options, while they touch on important aspects of lending, do not directly align with the primary purpose of TILA. Promoting ethical lending practices could be seen as a broader financial regulation goal, while protecting lenders from financial loss and standardizing loan terms are not central objectives of the Truth in Lending Act. Overall, ensuring that borrowers understand loan costs is at the core of TILA's mission to enhance consumer protection in lending.