True or False: Loans used to purchase or improve rental property are considered business-purpose and are exempt from Regulation Z.

Loans used to purchase or improve rental property are indeed considered to be for business purposes. Regulation Z, which implements the Truth in Lending Act, primarily applies to consumer credit rather than business or commercial credit. When a loan is taken out for the purpose of acquiring or improving a property that is utilized for rental income or other business activities, it falls outside the regulatory scope of consumer protection laws outlined in Regulation Z.

The classification as a business-purpose loan provides the rationale for the exemption from Regulation Z's disclosure requirements and other protections afforded to consumer transactions. As such, it reinforces the notion that the borrower is using the funds for profit-generating activities rather than personal use.

Considering this understanding of business-purpose loans, the assertion that loans for rental property are exempt from Regulation Z holds true.