What is required in oral responses to inquiries regarding interest rates?

Providing the "annual percentage yield" (APY) in oral responses to inquiries regarding interest rates is essential because it offers a clear and standardized way for consumers to understand the effective interest rate on their savings based on the compounding periods. The APY includes the interest rate and the effect of compounding, which allows consumers to compare different savings accounts more easily.

This requirement aligns with the objectives of the Truth in Savings Act, which aims to ensure consumers have the necessary information to make informed decisions about their savings. By presenting the APY, financial institutions help to enhance transparency and facilitate better comparisons among various savings options available to consumers. The other choices do not fulfill the primary need for clarity on interest earnings as effectively as the APY does.