Which of the following types of credit transactions are exempt from Regulation Z?

The correct choice is that commercial loans are exempt from Regulation Z. Regulation Z is designed primarily to protect consumers in credit transactions by requiring clear and transparent disclosures about the terms and costs of credit. It applies specifically to consumer credit transactions and not to business-related loans.

Commercial loans, which are typically extended to businesses rather than individual consumers, do not fall within the purview of Regulation Z. This means that lenders are not obligated to provide the same disclosures for commercial loans that they would for consumer loans. The expectation is that businesses have the resources and knowledge to negotiate terms without the need for the same level of consumer protection.

In contrast, home mortgage loans, credit card loans, and automobile loans are all intended for personal, consumer use and are thus governed by Regulation Z, ensuring that borrowers receive information about interest rates, fees, and other key terms. This protection is essential for helping consumers make informed decisions about their credit options, which is why these types of loans do not fall under the exemption that applies to commercial transactions.