What does Regulation Z primarily aim to protect?

Regulation Z focuses primarily on ensuring that borrowers have a clear understanding of the costs associated with credit. This regulation requires lenders to provide consumers with information about the terms and costs of credit, such as annual percentage rates (APRs) and other fees. By mandating clear disclosures and making certain information readily accessible, Regulation Z aims to empower consumers, allowing them to make informed decisions when it comes to borrowing.

Understanding the costs of credit is essential for borrowers to effectively compare different lending offers and choose the best option for their financial situation. This transparency is intended to promote fairness in lending practices and prevent deceptive or misleading credit practices.

The other options focus on interests and aspects that do not align with the primary goal of Regulation Z. While they may be relevant to various stakeholders in the financial system, they are not the primary aim of the regulation itself. The emphasis is on consumer protection and education rather than solely protecting lenders, financial institutions, or regulatory frameworks.