Arizona Real Estate License Practice Exam

The correct response is the advertisement that indicates the assumption of a loan at a specific interest rate, such as 8%. This specific mention of an interest rate is a clear and direct representation of the terms of credit, which, under Regulation Z (part of the Truth in Lending Act), necessitates full disclosure of credit terms.

Regulation Z was created to provide consumers with clear and transparent information about the costs associated with borrowing, ensuring they can make informed financial decisions. When an advertisement includes a specific interest rate, it implies a borrowing scenario that requires lenders to disclose additional information, such as the annual percentage rate (APR), terms of payment, total finance charges, and the total amount to be financed.

The other options are more general in nature and do not provide sufficient detail to trigger the full disclosure requirement under Regulation Z. Phrases like "affordable rates available," "low down payment," and "terms to please everyone" do not specify any particular terms of credit or lending conditions. As a result, these do not require the same level of disclosure about the credit terms as an advertisement that explicitly states an interest rate does.