How is the term "creditor" defined in Regulation Z?

The term "creditor" in Regulation Z is defined as a person or institution that extends credit to consumers. This definition captures the broad scope of what constitutes a creditor in the context of lending and borrowing. It includes various entities that offer credit products, such as loans, credit cards, or other forms of financing, to consumers. By focusing on the extension of credit, Regulation Z ensures that consumers are informed about the terms and costs associated with borrowing, thereby promoting transparency and protecting consumer rights.

The other options misrepresent the definition of a creditor. For example, defining a creditor solely as a banker or financial institution limits the term and excludes other types of creditors such as retail stores that provide financing options or online lenders. Similarly, saying that a creditor is any individual who deposits money in a bank is not accurate, as depositors do not necessarily extend credit. Lastly, characterizing a creditor as a government entity that regulates financial transactions does not align with the purpose of identifying entities that extend credit. Instead, it conflates the role of regulators with that of credit providers.