The regulations help creditworthiness people obtain charge accounts loans mortgages and other kinds of credit by not allowing creditors to treat applicants unfairly. But the regulations do not guarantee the applicant credit. Creditors may still determine creditworthiness by considering such factors as a income , expenses, age, debts, and reliability of the applicant. All creditors who regularly extend credit are covered by these regulations, including banks, small loans, and finance companies, retail and department stores, credit card companies, and credit unions.

Which of the following statements is the most likely reason why there was a need for regulating credit?

(1) in the past women and minority's found it difficult to obtain credit
(2) all groups in our society use credit responsibility
(3) many people misuse credit
(4) certain groups of people are good credit risks and others are not
(5) credit discrimination has been eliminated in most modern countries.

I think # 4 can someone please check my answer

Nope.

Which of the following ideas under the regulations described?

(1) all applicants for a loan are equally creditworthy
(2) the ability to repay a loan doesn't depend on gender or race
(3) consumers have a right to borrow money whenever they need it
(4)everyone has an equal right to credit regardless of his or her financial situation
(5) each lending institutions is the best judge of its lending practice

I think #2 but not sure

#3 many people misuse

Top one #3

3 and 4 are wrong for the first question. Please do not post this again.

2 is right for the second question.

First question #5

To determine the most likely reason for the need to regulate credit, we can break down the different statements:

(1) This statement suggests that women and minorities found it difficult to obtain credit. While this may be a factor contributing to the need for regulations, it is not the most likely reason, as it focuses on specific groups rather than the broader issue of credit regulation.

(2) This statement suggests that all groups in society use credit responsibly. While responsible credit usage is important, it does not directly address the need for regulation.

(3) This statement suggests that many people misuse credit. While credit misuse can be a problem, it does not explain why regulations were needed.

(4) This statement suggests that certain groups of people are good credit risks while others are not. This statement is the most likely reason for the need to regulate credit, as it hints at the potential for discriminatory practices or unfair treatment by creditors.

(5) This statement suggests that credit discrimination has been eliminated in most modern countries. While credit discrimination may be a concern, the statement implies that it has been resolved, so it does not explain the need for ongoing regulations.

Based on this analysis, statement #4 is the most likely reason for the need to regulate credit.